Why Does cLQDR’s Relative Value Keep Rising?

In late March 2022, Growth DeFi launched cLQDR on Fantom and it has generated quite the buzz ever since. It was the first derivative of Liquid Driver’s $LQDR. Now, less than three months later, cLQDR has grown to become the No. 1 Top Holder of xLQDR!

As a wrapped version of xLQDR, the relative value of cLQDR keeps increasing over time. But why is this the case?

Here we explain the compounding benefits and peg mechanics of cLQDR and why this means it should be one of the strongest holds for any portfolio on Fantom— especially if you believe in continued value being created by LiquidDriver.

cLQDR is Always Compounding Returns

The cLQDR ratio started even with LQDR at 1:1, but has risen to 1.17 in the last 3 months, meaning that users who staked at launch could get 1.17 LQDR if they decide to swap their cLQDR for LQDR today

Firstly, let’s run through some key points:

  1. cLQDR’s value relative to LQDR only ever increases. The ratio of LQDR that holders can redeem their cLQDR for always goes up. This is due to the process of cLQDR automatically compounding all the token rewards that currently accrue to xLQDR. As a cLQDR token holder you don’t have to do a thing!
  2. The cLQDR-to-LQDR ratio started at 1:1, but is now 1.17. So if you bought 100 cLQDR for 100 LQDR in March, you could now sell your 100 cLQDR for 117 LQDR.
  3. Should the price dip (i.e. ‘below peg’) on Beethoven-x, cLQDR’s buyback mechanics eventually bring it back to peg.
  4. When its price is at a discount on Beethoven-x, then it’s ‘below peg’. But is being below peg an issue? Being below peg means that the cLQDR holders benefit because (a) the cLQDR Buybackooor will buy back/lock more LQDR than it normally does, which (b) increases the cLQDR ratio at a faster rate, which (c) means higher APYs for cLQDR holders.

Here’s how the cLQDR APY would look with different one-year cLQDR discounts with an APY of around 132% (keep in mind that a discount that lasts very long is unlikely to happen, but we love hypotheticals!):

  • 1% Discount: 131.2% APY
  • 10% Discount: 151.54% APY
  • 25% Discount: 202.41% APY
  • 50% Discount: 425.26% APY
  • 75% Discount: 2,638.36% APY

Notice that for very extreme discounts for extended periods of time, it actually plays in favor of cLQDR holders. But keep in mind that the larger the discount, the more the buybackoor will buy, eventually returning back to peg.

You can now mint cLQDR here: https://mor-ftm.growthdefi.com/clqdr

Alternatively, you can buy cLQDR directly on Beethoven-x.

Creating a Leveraged Position with cLQDR

Users can also leverage their cLQDR — for FREE. On MOR Protocol, users can leverage their cLQDR to borrow $MOR, our overcollateralized stablecoin, for 0% interest. There are no fees to borrow MOR against your cLQDR, no fees to open a vault, and no fees to close/repay your debt.

MOR by Growth DeFi is Now the Top xLQDR Holder

As we mentioned briefly before, in only less than 3 months since the launch of cLQDR, MOR by Growth DeFi is now the #1 xLQDR holder, currently holding 272,607 xLQDR, perpetually locked for 2 years.

This is a significant milestone, considering that much of the growth took place in a less-than ideal market conditions. Two weeks ago, cLQDR earned a spot on the top-10 most purchased tokens among 100 biggest Fantom whales in a 24-hour period.

MOR Protocol is still performing well, since it profits well even in market downturns. This means that our surplus is growing steadily, which will in turn make MOR an even more robust protocol. This continued cLQDR revenue will be passed on to veGRO holders.

Our over-collateralized stablecoin, $MOR has kept its peg perfectly, and MOR Protocol has more than enough stablecoin reserves to support swaps if all holders decided that they all wanted to swap their MOR for a stable, or they wanted to repay their debts. Indeed, MOR has been one of the safest stablecoin holds in the current market.

We also are grateful to our partners Beethoven x and Liquid Driver for helping make cLQDR possible. Working together with them has been a pleasure and we’re excited to see what new things the future brings.

What is Growth DeFi Building Next?

Since we are always building, you might be wondering what we are working on now? Coming next up on MOR: MOR Perpetual Futures. Stay tuned for MORe…

Where Can I Read More About cLQDR?

For more info, see the helpful links or sites below:

Growth DeFi has been operating since 2020. For more info on Growth DeFi or MOR, please see our main website or MOR Protocol, visit our Linktree, read our docs, or stop by our Telegram channel to chat with our team.

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Growth DeFi

Growth DeFi

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Leveraging the power of DeFi protocols to maximize capital efficiency