Liquid ICP
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ICP and token flow diagram.

Tokens

ICP-20: 1 - 1 bridged ICP token on erc-20 standard which can be traded or used in various DeFi projects as collateral, staked to earn LP rewards or staked for st-ICP (Liquid version of icp-20) which enables user to earn Neuron staking rewards.

st-ICP: A token that represents staked ICP-20 in Liquid ICP, combining the value of initial deposit + NNS rewards. st-ICP tokens are minted upon deposit and burned when ICP redeemed. ICP-20/st-ICP tokens' ratio is updated weekly when the oracle reports staking reward amount. st-ICP tokens can be used as one would use ICP-20, allowing you to earn Neuron staking rewards whilst benefiting from e.g. yields across decentralized finance products.

LICP DAO

DAO: Aragon DAO that governs protocol parameters

LICP: Governance token of Liquid ICP ecosystem capped at 10,000,000 tokens. Holders can stake it for Liquidity pool rewards and can participate in insurance staking. Liquid ICP will make monthly LICP buybacks in USDC which is earned from compounded Neuron staking.

  • a1: 50% of income from governance tokens sales will go to initial staking in NNS.
  • a2: 30% of income from governance tokens sales will go to Secure Vault to secure initial liquidity.
  • a3: Governance token holders can stake their tokens in LICP/USDC pool to earn LICP.

Fractional Reserve

Ledger canister account: Smart contract that maintains liquidity for ICP-20 to ICP swaps.

  • b2: 95% of ICP’s from bridging will go to NNS for staking to generate rewards.
  • b3: 5% of ICP’s from bridging will go to Fractional Reserve to ensure the immediate liquidity for the users.
  • b4: 70%of rewards generated from NNS will go to Fractional Reserve.
  • b5: The remaining 30% will be re-staked for compounding purposes.
    *Note: b4 to b5 ratio will be calculated weekly according to Fractional Reserves ICP demand and supply will differ, in high demand periods it could be that 100% of rewards would go to Fractional Reserve to refill it.

s-Bridge

  • s-Bridge: Performs issuance (and burning) of 1:1 pegged representative tokens, for example issuance of pegged ICP, namely ICP-20 can be done through the s-Bridge. When a user deposits Dfinity native asset ICP onto the Liquid ICP platform, s-Bridge performs the minting and issuance of the corresponding ICP-20 to the user’s designated address on EVM compatible blockchain.
  • b1: ICP coins will enter the system through 1:1 swapping process where users will get erc-20 token (ICP-20) on EVM compatible chain.
  • c1: ICP-20 smart contract to manage deposits, staking rewards, issuance of st-ICP and withdrawals of ICP-20 with generated rewards.
  • c2: ICP-20 token can be bridged back and user will get ICP coins from Fractional Reserve.
  • c3: Swapped ICP-20 tokens could be used as collateral or staked in partnering DeFi ecosystems or in insurance fund to earn rewards.
  • d: Is the amount of ICP that leaves the platform where d1= initial swapped ICP + rewards generated from ICP-20's liquid staking.

Liquid Staking

  1. 1.
    e1: ICP-20 can be staked for NNS rewards and users will receive st-ICP tokens, liquid version of staked ICP-20 + staking rewards.
  2. 2.
    e2: Users can further utilize st-ICP tokens as collateral or in liquidity pools.
    *Note: st-ICP= icp-20 + voting rewards from NNS.
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Tokens
LICP DAO
Fractional Reserve
s-Bridge
Liquid Staking