What is LIQ?
The Governance Token of iAERO
LIQ (Liquid) is the native governance and value accrual token of the iAERO protocol. It's designed to align long-term stakeholders with protocol success through voting rights and revenue sharing.
Token Purpose
1. Protocol Revenue Sharing
LIQ stakers receive 8% of all protocol revenues (80% of the treasury's 10% share). This creates a direct value flow from protocol usage to LIQ holders.
2. Governance Rights
LIQ holders vote on critical protocol decisions:
Fee parameters
Treasury allocation
Strategic partnerships
Protocol upgrades
Voting strategy adjustments
3. Incentive Alignment
Early participants receive higher LIQ emissions, rewarding early adoption and long-term commitment to the protocol.
How to Earn LIQ
Primary Distribution: Mining Rewards
When you deposit AERO into iAERO, you receive LIQ tokens as a bonus:
Starting Rate: 1 LIQ per 1 iAERO minted
Halving Schedule: Rate cuts in half every 5M LIQ minted
Your Share: 80% (20% goes to treasury)
Example Deposit:
Deposit: 1,000 AERO
Receive: 950 iAERO (after 5% fee)
Bonus: 950 LIQ (at 1:1 rate)
Net to you: 760 LIQ (after 20% treasury share)
Liquidity Provision Incentives (Coming Soon)
iAERO/AERO Pool Rewards Program We're launching a dedicated incentive program for iAERO/AERO liquidity providers to ensure deep, stable liquidity. Dual Reward Structure:
LIQ Emissions: Direct LIQ rewards for LP stakers (separate from deposit emissions) Trading Fee Boost: Protocol-funded bribes to the iAERO/AERO gauge
How It Works:
Add liquidity to iAERO/AERO pool on Aerodrome Stake your LP tokens in our incentive contract Earn LIQ rewards on top of normal trading fees Protocol votes for its own pool, directing emissions
Planned Incentive Rates:
Initial: 10,000 LIQ per week distributed pro-rata to LPs Decreases by 10% monthly to find sustainable equilibrium Minimum 1,000 LIQ per week floor
Why This Matters:
Better Pricing: Deeper liquidity = less slippage Peg Stability: More liquidity helps maintain iAERO/AERO ratio Additional Yield: Stack LP fees + AERO emissions + LIQ rewards Protocol Growth: Liquid markets attract more users
Target Metrics:
$5M+ TVL in iAERO/AERO pool <2% price impact on $100k swaps Daily volume >$500k
Launch Timeline: 4-6 weeks after protocol launch, once initial liquidity established This creates a sustainable liquidity flywheel where the protocol directly incentivizes its most important trading pair, ensuring users can always enter and exit positions efficiently.
LIQ Tokenomics
Supply Cap: 100 Million
Total Supply: 100,000,000 LIQ ├── Community Mining: 60,000,000 (40%) ├── Treasury Vesting: 10,000,000 (10%) ├── Team Vesting: 10,000,000 (10%) ├── Investor Vesting: 20,000,000 (20%) └── Unallocated Reserve: 20,000,000 (20%)
Emission Schedule
0-5M
1.0x
1.000
Months 0-3
5-10M
0.5x
0.500
Months 3-8
10-15M
0.25x
0.250
Months 8-18
15-20M
0.125x
0.125
Months 18-36
20-25M
0.0625x
0.0625
Years 3-5
Why Halvings Matter
Decreasing Inflation: Supply growth slows over time
Early Advantage: First movers get most LIQ per dollar
Scarcity: Later users compete for fewer tokens
Value Accrual Mechanisms
Direct Revenue Flow
Protocol Fees (10% of all rewards) └→ TreasuryDistributor ├→ 80% to LIQ stakers (8% of total) └→ 20% to Treasury ops (2% of total)
What LIQ Stakers Earn
AERO tokens
USDC from bribes
ETH from fees
Various protocol tokens
Any future protocol revenues
Staking LIQ
Stake LIQ in dedicated staking contract
Earn proportional share of revenues
Claim rewards anytime
No lock period required
Use Cases
For Investors
Revenue Share: Passive income from protocol fees
Governance Power: Influence protocol direction
Speculation: Benefit from protocol growth
For Protocols
Meta-governance: Control how iAERO votes
Partnership Stakes: Align with iAERO ecosystem
Liquidity Mining: Incentivize specific behaviors
For Users
Bonus Rewards: Extra tokens on top of iAERO
Community Participation: Vote on proposals
Fee Reduction: Potential future benefits for holders
LIQ vs iAERO
Represents
Staked AERO
Protocol ownership
Supply
Uncapped
100M max
Earning Method
Deposit AERO
Deposit AERO or vest
Staking Rewards
80% of vote rewards
8% of vote rewards
Primary Utility
Liquidity + yield
Governance + yield
Price Correlation
Tied to AERO
Independent
Future Utility Expansion
Planned Features
Vote Boosting: Lock LIQ for increased iAERO rewards
Fee Discounts: Reduced protocol fees for LIQ holders
Exclusive Pools: LIQ-gated investment opportunities
Bribe Direction: Vote on bribe allocation strategy
Potential Developments
Cross-chain governance
Protocol-to-protocol negotiations
Revenue from additional products
Partnership revenue shares
Getting LIQ
Option 1: Earn Through Deposits
Deposit AERO into iAERO vault
Receive LIQ automatically
Earlier deposits = more LIQ per AERO
Option 2: Buy on Market
DEX: Aerodrome (LIQ/USDC, LIQ/AERO pairs)
Aggregators: Use Matcha, 1inch for best price
OTC: Large trades via Discord
Option 3: Liquidity Provision
Provide liquidity to iAERO or LIQ pairs
Earn trading fees + potential emissions
Risk of impermanent loss
Risks and Considerations
Token Risks
Protocol Dependency: Value tied to iAERO success
Emission Pressure: High early supply growth
Liquidity Risk: May have limited exit liquidity
Regulatory: Governance tokens face evolving regulations
Mitigation Strategies
Dollar-cost average during high emission periods
Stake to earn revenues while holding
Participate in governance for long-term value
Provide liquidity to deepen markets
FAQ
Q: Is LIQ required to use iAERO? A: No, LIQ is a bonus token. You can use iAERO without holding LIQ.
Q: Can I stake both iAERO and LIQ? A: Yes! Stake iAERO for 80% of rewards, LIQ for 8% of rewards.
Q: Will there be more LIQ after 100M? A: No, 100M is the absolute maximum supply forever.
Q: What happens when emissions end? A: LIQ becomes purely a revenue-sharing and governance token.
Q: Can LIQ be burned? A: Yes, anyone can burn their LIQ tokens permanently.
Summary
LIQ is your stake in the iAERO protocol's future. Early depositors receive the most LIQ, creating strong incentives for early adoption. With revenue sharing, governance rights, and a capped supply, LIQ captures value as the protocol grows.
Whether you're here for the yields, the governance, or the upside potential, LIQ represents your seat at the table in the liquid staking revolution.
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