How to Double Your HODLing Chances with Liquidify.io
Liquidify is a novel protocol designed to benefit a group of users that are large in number but often underappreciated: the HODLers. Liquidify allows crypto HODLers to put their most beloved crypto assets into the Liquidify asset pool as collateral and receive LAT and LFY tokens. The collateralized assets are still owned by the user and can be exchanged back at the original exchange rate at any time. This means that protocol users can effectively double their upside potential while also mitigating the risk of their original assets decreasing in price, a total no-brainer!
Liquidify Protocol: core functions
The Liquidify Protocol has 3 core functions: exchange, synthetize, and staking. Let us focus on the most important function first, the “synthetize” function. Synthetization is the core functionality of Liquidify, allowing users to put certain crypto assets as collateral into the protocol to receive LAT and LFY, while retaining the ownership of their assets at all times. For example, if a user puts 1 BNB into the protocol and receives 120 LAT, she can always redeem her 1 BNB for 120 LAT, no matter the price change of each of these tokens. There is no liquidation and no risk of losing the original asset.
The “exchange” function works the same way as synthetization, with the crucial difference that those assets exchanged by the user are not owned by the user anymore and cannot be exchanged back at the original rate. Rather, users can trade directly with the protocol at current prices. Finally, users can use the “staking” function to stake LAT that they have bought, exchanged, or synthetized before to receive high auto-compounding yields (3,3!).
LAT & LFY Value Proposition
LAT is backed by the total asset pool value plus its utility value, while LFY can be used in protocol governance. As the total supply of LAT is limited, while the amount of assets that can be put in the protocol is practically unlimited, LAT’s value must continue to rise as the asset pool value increases.
LFY is Liquidify’s protocol governance token which can be used to create and vote on proposals concerning protocol upgrades, protocol fees, asset pool allowlist, asset pool weight ratio and more. Additional use cases for LFY may also be conceived and voted on by the community.
Using the Liquidify Protocol
To start using Liquidify, first go to our dapp page https://main.liquidify.pro/ where you can see an overview of the Liquidify asset pool, including the total asset pool value and the share of different assets currently locked in the pool. Additionally, you can directly access each of the protocol core functions exchange, synthetize and staking by clicking the respective buttons next to the asset pool pie chart. Scrolling down you can also see the LAT price and an asset pool growth chart, as well as a list of all assets currently on our allowlist, sorted by asset levels A (top level assets) to D (lower-level long-tail assets).
How to double your upside with Liquidify
They key to doubling your HODLing chances and upside potential with Liquidify is using the synthetize function. As mentioned before, synthetize allows you to keep the ownership of your original asset that you put in the protocol and to exchange it back at the original rate any time. After synthetizing your asset (let’s take BabyDoge as an example) and receiving LAT, there are 5 possibilities of what might happen next:
1. LAT price increases, BabyDoge price decreases/stable
2. BabyDoge price increases, LAT price decreases/stable
3. LAT price decreases, BabyDoge price decreases even more
4. BabyDoge price decreases, LAT price decreases even more
5. LAT and BabyDoge decrease by the same amount
In 4 of these cases, you can benefit from the protocol by increasing your upside potential and significantly lowering your price risk, while in the 5th case is neutral, neither benefit nor loss. Let’s explain:
1. In this case, you can sell LAT for a profit, stake (3,3!), or continue to hodl
2. In this case you can swap LAT back to BabyDoge at the original rate and sell your BabyDoge for a profit
3. In this case, holding LAT instead of BabyDoge mitigates the price risk of holding BabyDoge as single asset, instead of an asset backed by a diversified asset pool such as LAT
4. In this case, you can swap back LAT for BabyDoge and avoid an even heavier loss
5. In this case you will not benefit, but there is also no loss compared with just holding your original asset BabyDoge
This is how you “double” your upside and “halve” your risk with Liquidify! We say double your upside because now you have 2 chances to make a profit, your original asset (e.g. BabyDoge) and LAT, instead of one. Who would not want two chances for moonshot instead of one, really a no-brainer!
On the other hand, it is obvious how Liquidify can also help you to “halve” (decrease) your risk by holding an asset backed by a diversified pool of assets, instead of simply holding your original asset. You simply cannot lose with Liquidify!
As mentioned in the very beginning, this is a protocol built for HODLers, those who are holding onto their beloved cryptos, sometimes for the better and sometimes for the worse. We want to empower the HODLers and protect them from price dumps, while giving them more chances to go where all of us cryptonians want to go: to da moon!
Visit and follow us here:
Official website: www.liquidify.io
Official Telegram: https://t.me/liquidifyio
Official Twitter: https://twitter.com/Liquidifyio
Official Facebook: https://bit.ly/3tpXXaH
Official Medium: https://medium.com/@liquidify
Official Discord: https://discord.gg/bsM7ykdqrd
Official E-mail: contact@liquidify.io