Announcing BLiquid ($BLIQ): An Auto-Liquidity-Generating Protocol For BSC
💻 1. Abstract
The automated market making (AMM) protocol has paved the way for a new generation of decentralized exchanges like Uniswap (Ethereum) and PancakeSwap (BSC).
AMMs have opened up doors for countless DeFi projects to launch without the need for traditional market makers to provide liquidity, as is the case with centralized exchanges.
However, one looming problem remains for every token on a DEX and that’s the issue of liquidity centralization. Normally, the project owners provide the starting liquidity (either bootstrapped by the team or raised via token sale), and users have to trust the liquidity will remain for some period of time.
Some projects such as Unicrypt (on ERC-20) have created dApps where teams can time-lock their starting liquidity as a way to build trust within their community. However, this also locks up funds that could otherwise be used to advance the project. Plus, the liquidity can still be removed once the lock is over.
Many projects have attempted to decentralize the liquidity by incentivizing users to provide it themselves. This is the case with most yield-farming tokens, that reward governance tokens in exchange for providing liquidity to the platform. However, the issue with this model (as we’ve all seen since the rise and fall of Sushi) is most yield-farmers don’t care much about governance as they are about making a profit by selling the reward tokens.
BLiquid attempts to solve the liquidity issue by creating a protocol where liquidity is auto-generated with each transaction and locked inside of the contract, where it can never be transferred. This ensures a perpetual liquidity pool that only increases with every transaction.
🌊 2. The BLiquid Protocol
BLiquid is a soft fork of the Molten project ($MOL) on ERC-20. It has essentially the same token-mechanics as MOL, which includes a perpetual liquidity meta-market-making mechanism that originated from the “Proof-of-Gate” (POG) mechanism from the Heaven’s Gate ($HATE) project.
In short, this mechanism guarantees perpetual baseline liquidity, which will continue to grow as more trades are executed. It does this by taking a 5% tax from every transaction, and using the taxed tokens to generate liquidity pool tokens, which are locked into the contract itself and cannot be moved or transferred.
Additionally, 1% of the transfer is sent to the 0x00000 burn address to create a deflationary mechanism to make each BLIQ token more scarce as time goes on
🔋 3. BLiquid’s Auto Liquidity-Pooling Logic
Here’s how the BLIQ token contract works:
Every time a BLIQ transfer happens…
- 1% of the transaction is sent to the burn address and is destroyed forever
- 5% of the transaction is sent to the contract
- When the taxed BLIQ reaches a threshold (initially set to 50 BLIQ), the contract will market-sell the BLIQ for BNB
- The contract then creates a PancakeSwap LP token using equal parts BLIQ and BNB
- The LP token is stored inside of the contract, where it cannot be transferred, thus creating perpetual entrance and exit liquidity
The starting tax rate is set to 5% because that’s what $MOL used initially, and has seen success with. This tax rate, along with the BLIQ threshold before a token swap occurs, can be adjusted at any time.
🌎 4. Fair Launch Mechanics
In recent weeks, we’ve seen more and more DeFi do “stealth” launches rather than traditional token sales. The most noticeable one stealth launch was Andre’s Cronje’s Keep3r project.
While stealth launches create a more organic community, they also introduce bots and early whales into the ecosystem.
That’s why we kept $MOL’s fair launch features:
- Maximum transaction limit of 500 BLIQ
- Trading is paused upon listing and will be enabled within a short period of time by default to prevent bots from “sniping” the listing (note: trading can never be re-paused again)
This ensures everyone has a fair shot during the listing to buy as much or as little $BLIQ as they want. The initial team-provided liquidity will be locked inside of a time lock contract for 14 days while the protocol’s liquidity continues to grow.
After 14 days, only the initial BNB provided by the team will be removed. This shouldn’t have much of an impact on the overall pool since by that point, the protocol should have generated more liquidity than what was initially provided.
The rest of the PancakeSwap LP tokens will be burned, guaranteeing permanent liquidity.
📰 $BLIQ Token Economics
- Initial supply: 8,888 $BLIQ
- Tax per transaction (gets added to liquidity): 5%
- Burn per transaction: 1%
- Dev fee: 2.5% (222 BLIQ)
- Marketing and community rewards: 7.5% (666 BLIQ)
- Initial Liquidity: 100BNB / 7,999 BLIQ
- Initial Liquidity provided by the team will be locked for 2 weeks using a timelock contract