Liqwid & Indigo Partnership

4 min readDec 6, 2021

We are thrilled to announce our latest partnership to the community this week — Liqwid and Indigo will be joining forces to offer the following features to Cardano DeFi users:

iAsset stablecoin & synthetic asset (e.g. iUSD / iBTC) lending & borrowing on the Liqwid protocol.
qToken stablecoin (e.g. qLQUSD) as collateral types on Indigo Protocol.
Explore future composable product offerings across stablecoins.

Collateralized debt position (CDP) DeFi protocols such as Liqwid and Indigo allow users to tap into the liquidity of their ADA and stablecoins by using them as collateral all with no trading fees, no slippage and no impermanent loss (single asset liquidity pools). Securely manage your positions and earn yield on crypto with a set of user friendly app interfaces with Indigo and Liqwid.

iAsset Stablecoin Lending & Borrowing on Liqwid

The Liqwid protocol will establish a lending and borrowing market for iAsset stablecoins through the Liqwid DAO’s governance proposal process for whitelisting new markets and collateral type parameters. Listing the iAsset stablecoin market on Liqwid is a secure approach to increasing the protocol’s stablecoin borrowing capacity. Once the Liqwid DAO community of LQ holders approves the new iAsset stablecoin market and parameters users holding that iAsset stable will be able to lend and borrow on the protocol.

The iAsset stablecoin market(s) will be included in the LQ Community Distribution program. This means that iAsset stablecoin lenders and borrowers will be eligible for a LQ bonus yield proportional to their supplied or borrowed amount.

qToken Stablecoin as Collateral Types on Indigo

Liqwid’s stablecoin qTokens (e.g. qLQUSD, qdUSD) will be listed as collateral options for minting Indigo iAssets. Whitelisting the qToken stablecoins on Indigo will create more efficiency and liquidity for users minting iAssets.

qToken stablecoin holders will be able to stake their minted iAssets in the Stability Pool for yields paid out in the Indigo DAO Token INDY. This allows qToken stablecoin holders to mint iAssets and earn an additional yield from staking them in the Indigo Stability Pool.

Eric Coley, Founder of Indigo, stated:

“The Liqwid team has long been a mainstay and leader in the Cardano DeFi ecosystem. Indigo is pleased to officially partner with Liqwid to offer cross-protocol solutions that will aid further adoption and legitimacy of DeFi on Cardano. We believe that this ecosystem can not only thrive on its own, but is capable of leading the industry as a whole if developed and nurtured properly. This partnership is a great step in that direction.”

Dewayne Cameron, Founder of Liqwid, stated:

“This partnership will drive stablecoin liquidity and future product developments across two of the leading Cardano DeFi protocols. We are pleased to work with the brilliant Indigo core dev team to implement robust stablecoin product offerings for the Cardano DeFi ecosystem.”

Conclusion

We are looking forward to adding the above features to Liqwid and working closely with the Indigo core development team. We will share more details in the future as this partnership further develops.

About Liqwid

Liqwid is a non-custodial DeFi liquidity protocol for lending and borrowing Cardano native assets. Users can securely earn interest on deposits and borrow assets with ease while earning yield on ADA from multiple revenue streams.

Our mission is to build robust lending products on open source DeFi infrastructure accessible for anyone on the internet to earn yield on their assets and tap into liquidity. Liqwid allows users to securely earn interest for supplying assets to liquidity pools, open collateralized debt positions (CDP) to borrow assets, participate in governance and earn LQ rewards through liquidity incentives built into the Community Distribution program with ease.

About Indigo

Indigo is an algorithmic, autonomous synthetics protocol for on-chain price exposure to real-world assets, built on Cardano. Indigo allows the creation of fungible assets, “synthetics”, that track the price of real world assets. Indigo synthetics are intended to be used as key building blocks in smart contracts, and to bring the world’s assets to the blockchain.

iAssets enable significant advantages over traditional assets: users can hold them in fractional shares and trade them irrespective of their geographic location or market hours. Users can benefit from price exposure to the underlying asset without going through the obstacles and potential delays of purchasing the real world and/or digital asset. Enabling price exposure to assets via Indigo’s noncustodial & decentralized architecture unlocks opportunities for wealth creation at a global scale for anyone with an internet connection.

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