Liquid Capital Overview and Presale

Liquid Capital is a new rebase token and that might alone be a quick turn off to many but please read on. I did buy some Safuu a few months ago, the only rebase token I owned up to this point, and while it sank dramatically during the bear market it has rebounded nicely and I'm in the green on the project overall at this point. That said, the good thing about DeFi is that developers keep innovating and building on what others have done meaning the projects are getting better and better and Liquid Capital has certainly followed this blueprint.

What stood out to me initially about the project was that their team is fully doxxed and KYCed, while also being well known based on their success with Grape Finance and other DeFi projects. Digging in further, their list of partners is quite impressive and growing (see below). Finally and most importantly, I found the tokenomics involved quite interesting as they have attempted to do a few innovative things in rebasing that adds "safety, sustainability , and price stability."

Key features of the Liquid Capital $LQD token include:

• Sustainable dynamic APY

• 30 min Rebases (tokens grow 48 times a day automatically)

• Variable tax rate system

What is a "rebase" token?

According to CoinMarketCap, a "rebase (or price-elastic) token is designed in a way that the circulating token supply adjusts (increases or decreases) automatically according to a token’s price fluctuations. This expansion and contraction is what we call a rebase mechanism."

In these cases, rebase tokens are cryptocurrencies you purchase and hold in your wallet that "rebase" or grow automatically in terms of the number of tokens you own. Unlike Ampleforth (AMPL) earned on Publish0x, these tokens typically don't react to price fluctuations. There is nothing you need to do on your part, just park the token in your wallet and you will see them grow in the given timeframe (every 30 minutes in the case of LCD).

The problem with rebase tokens is that while the number of tokens grow (inflationary), the price tends to go down and this can outpace the growth of the number of tokens meaning your overall value diminishes. Solve this problem and you may have something!

Titano was one of the first rebase tokens that investors really jumped on. Libero and Safuu jumped in on the rebase craze, each with slightly different tokenomics designed to improve upon what Titano set out to do. Others have followed suit, but those three are most well known at this point.

These tokens try to take advantage of the power of compounding which doesn't take place in a linear fashion, but exponentially over time. So if you bought one $LQD token and held it for a year with a 2.0197% daily APR, it would grow into 1,478.05 $LQD tokens after 12 months with the bulk of that  growth happening in the last few months.

Liquid AR

Liquid AR (LAR) is a decentralized financial (DeFi) protocol that "rewards investors with a sustainable, variable compound interest return through its no stake Liquid Auto Rebase (LAR) mechanism." Unlike most rebase tokens, the team at Liquid Capital will reset the APR on a weekly basis to ensure it is sustainable for the long-term using a "sustainability formula".

(VDay1 + VDay 2 + VDay 3 + VDay4 + VDay5 + VDay6 + VDay7 ) / 7  = V Average

APRDaily = ((VVV Average * .05) / MC) * 100

NOTE: V = volume and MC = market cap

Liquid Capital will also use buy and sell taxes to support the protocol with a 15% buy tax and 20% sell tax (sell tax starts at 26% but reduces over 30-days). These taxes go back to the Liquid Insurance Fund (LIF) to support the liquidity pool, the treasury fund which supports the LIF while also supporting manual token buybacks and funds new project, and provides liquidity at varying degrees depending on the tax amount with one percent going to the Liquidity Capital team. I do not believe there is any buy tax, however, if you get in during the presale based on my experience.

Backing the APR and Solving the Rebase Issue

The Liquid Capital team uses the LIF to add liquidity to the protocol teaming their native LQD token with BUSD. What I really like is that they are using Horde's Liquidity Management System (LMS) which will help stabilize the price of the LQD token. This proven revolutionary system uses a series of smart contacts to solve the biggest issue with prior rebase tokens - stabilizing prices.

Imagine holding a token that grows multiple times with a stable price. That is passive income being generated by simply holding a token in your wallet automatically twice an hour.

Partner List and Pre-Sale Process

You won't find many new projects, especially those still in the presale phase, with a partner list like Liquid Capital. I discovered the protocol through my investment with EMP Money and if you are interested in taking part of the presale you must do it through a partner. Feel free to use the EMP Money presale link to get involved if interested.

Other partners include: Aegis, Ames, Asgard, Based Labs, Blookify, Brr Finance, Carpet DeFi, Cryptonairz, Dibs Money, El-Taco Finance, Flask Capital, Frozen-Walrus, Grape Finance, Gaur Money, Gadiator Finance, Goldmint Finance, Hamster of the Opera, Horde, Ice-Cream Finance, Magik Finance, Orbital, Piggy Finance, Scarab Finance, Serenity Caital, Snow Tomb - Frozen Tomb, Spartan Capital, Spring-Game, Swapsicle and Titano.

Liquid Capital Roadmap

The team at Liquid Capital have developed a four-stage roadmap to help communicate both their short-term and long-term plans.

Phase 1 = Launch

• Fair Launch on DEX

• Pre-Launch Marketing

• Audit

• Dashboard Stress Text

• Coingecko Listing

• Coinmarketcap Listing

Phase 2 = Stabilization

• Multi Community Creation

• Multi Language Website / Documentation

• DappRadar Listing

• Coin Trackers Listing

• Social Media Marketing

• YouTube Marketing Campaign

Phase 3 = Growth

• PR Marketing

• SEO

• Partnerships

• Cross-Chain Integration

• Merchandising

Phase 4 = Maturity

• bNFT (Boost NFT) integration

• No Loss lottery game integration

• Enhanced cross-chain functionality

• Increase yield bearing opportunities

• CEX listings

Presale Buying Process

Getting involved is really quite easy, simply pick a partners link, connect your MetaMask wallet, and deposit the required token with a minimum value of $50. The token required will depend on the partner you pick and the network they operate on but will always be a stablecoin. Because I used the EMP Money presale link and they work on the Binance Smart Chain, I had to deposit BUSD. 

I didn't have any BUSD in my wallet so I claimed just over the minimum requirement from the rewards in one of my EMP Money farms and deposited that via the link after converting the ESHARE reward token to BUSD on PancakeSwap. In total, I deposited $52.79 worth of BUSD and received 527.87 LQD tokens that will be airdropped to my MetaMask wallet at some point. Once that happens, I will simply transfer the tokens to my Ledger wallet where they will rebase automatically every 30 minutes.

I'm still not sold on rebase tokens but I do want to pay attention to this project which is why I elected to invest such a small amount. Plus I consider all projects like this "degen" and usually will only invest up to around $500 at most as the degen portion of my crypto DeFi portfolio is pretty small. In this case, I'm certainly prepared to lose $52.79 if that happens without sweating too much.

Conclusion

Crypto is risky and please don't consider any of this financial advice. Rebase tokens are not my favorite investments in the crypto world, but the DeFi degen in me likes to invest small amounts in projects like this every so often to dig into the tokenomics and have a little fun. - it is as close as I come to actual gambling. I certainly do enjoy seeing the number of tokens in my wallet increase all the time and if Liquid Capital can truly have a somewhat stable price through their partnership with Horde it will make for a nice long-term investment.

I am very impressed by their partner list and like the fact that by using one of their partners presale list the partner benefits with a percentage of investments. Emp Money's link alone has already provided $522,649.43 in investment in Liquid Capital after my minor contribution. That is pretty amazing after just a few days!

It is a project designed to benefit both whales and minnows alike equally. This allows investors like me to tip toe into the water and test things out which is always nice. I expect the team at Liquid Capital to continue to expand their partner list and also build a strong ecosystem around the protocol. I may throw a few more dollars at the project in the future if I like what I'm seeing after the launch in terms of project growth (or additional utility added within the project).

As with all DeFi projects, do your own research. There are many videos on Liquid Capital being created on YouTube and feel free to join their Discord channel to learn more.