Liqwid has a thriving community on Discord where you can connect with other users, ask questions, and receive real-time updates. Here’s how to join:<ol><li>Open the Liqwid website on www.liqwid.finance</li><li>Locate the Discord icon next to “Launch App”.</li><li>Login/Sign up to Discord.</li><li>Join the server and explore channels like: - Community-Chat - Cardano-DeFi - Price-Discussion - Governance Discussion</li></ol>Discord is also where you’ll get quick responses from both the community and the support team, and it’s an excellent place to stay updated on new features and protocol changes.

Accessing Discord

Sometimes, you'll need more personalized help or want to ask specific questions regarding your account or technical issues. Here’s how to submit a support ticket:1. Navigate to the 'Support-Ticket' section in the Liqwid Discord.2. Select a topic: - Reward Claiming Ticket - Reward Calculation Ticket - Open a Ticket3. Submit the ticket, and our team will address your concern as quickly as possible.By submitting a ticket, you get direct assistance from Liqwid’s support team, who will ensure your issues are resolved promptly.

Submitting a Support Ticket

Quiz

Getting Support on Liqwid

Interest rates on Liqwid are dynamic and are calculated based on the supply and demand for each asset. The more demand there is to borrow an asset, the higher the interest rate becomes, and vice versa.<ul><li>Supply and Demand: As more users supply an asset, the interest rates may decrease due to increased availability. When demand to borrow an asset increases, the rates increase.</li></ul>Formula Example:Let’s assume the formula for interest rate in a lending pool is based on market utilization, which is the ratio of borrowed assets to supplied assets:Interest Rate=Base Rate+(Utilization Rate×Risk Factor)Where:<ul><li>Base Rate = The starting interest rate.</li><li>Utilization Rate = Borrowed Assets/Supplied Assets</li><li>Risk Factor = A factor that adjusts based on market volatility.</li></ul>

How Rates Are Calculated

The utilization rate directly impacts interest rates. The formula shows that the higher the utilization rate, the higher the interest rates. If the utilization rate increases (more borrowing), the system automatically adjusts the rates to balance the supply and demand.Example:<ul><li>If the utilization rate for ADA is 75%, the interest rate might be 6.5% for the borrowers.</li><li>If the utilization rate increases to 90%, the interest rate might automatically adjust to 7%.</li></ul>This dynamic adjustment ensures the protocol remains balanced and incentivizes more suppliers to participate when demand is high.

Market Utilization Impact 

<ul><li>APY (Annual Percentage Yield): APY reflects the actual rate of return earned on an asset, factoring in the effects of compounding.</li><li>APR (Annual Percentage Rate): APR is the yearly interest rate without considering compounding</li></ul>Example: If you lend 1,000 ADA with 5% APR, you would earn 50 ADA per year, but if compounding is applied monthly, your APY might be around 5.12%, meaning you would earn slightly more due to compounding.

APY and APR Explained with Examples

Understanding past interest rate trends helps you time your supply and borrow actions more effectively. With Liqwid's new Transaction History tool, users can now access a full record of their protocol interactions—making rate analysis easier than ever.Why it matters:Interest rates on Liqwid are dynamic. They adjust in real time based on each market’s supply and demand. By analyzing past supply and withdraw activity (yours or others), you can:<ul><li>See when lending or borrowing demand spiked.</li><li>Identify rate volatility for specific markets (e.g. ADA, USDM).</li><li>Plan strategies for future market shifts. </li></ul>What's you can do:You can now filter, sort, and export all your supply and withdraw data:<ul><li>Filter by action type (Supply / Withdraw)</li><li>Sort by date</li><li>Export to .csv, .xlsx, or .json for deeper analysis</li><li>Borrow, Repay, and Liquidation history.</li></ul> Example:Let’s say you borrowed ADA in Q2. By reviewing your Transaction History and historical utilization rates for the ADA market, you can correlate when your interest rate increased and why. This empowers you to refine your collateral and timing strategy moving forward. Try It:→ Connect your wallet → Go to the “Transactions” tab on <a target="_blank" rel="noopener noreferrer nofollow" href="http://app.liqwid.finance">app.liqwid.finance</a> → Export your history → Run a comparison with historical rate charts

Historical Rate Analysis

Understanding Rates and Utilization

One of the most powerful features of Liqwid is the ability for users to earn APR (Annual Percentage Rate) by supplying their assets to the platform. Here’s how it works:<ul><li>When you supply assets, such as ADA or stablecoins, you receive qTokens, like qADA, which represent your deposited assets.</li><li>These qTokens accrue interest as they are lent to borrowers, and you earn LQ tokens as an additional reward.</li><li>You can claim your rewards via partner integrations like SundaeSwap, a decentralized exchange that supports LQ tokens for staking and liquidity provision.</li></ul>Example: If you supply 1,000 ADA to Liqwid, you will receive qADA tokens. The amount of interest you earn depends on the lending rates, which fluctuate based on supply and demand. Additionally, you will earn LQ tokens, further increasing your returns.

Supplier APR Rewards

Even while your ADA is locked within the Liqwid protocol, it continues to participate in Cardano staking pools and earn rewards. This is possible due to smart contract integrations, which allow you to stake ADA while still using it as collateral in Liqwid.How Is This Possible Simultaneously?Staking ADA: On Cardano, users can delegate their ADA to staking pools to earn rewards. Normally, when you stake ADA, it’s locked for a specific period. In Liqwid: Even though your ADA is “locked” in the lending pool, it still earns staking rewards because Liqwid’s smart contracts enable your ADA to be part of a delegated staking pool while it remains available as collateral.Example: Imagine you supply 1,000 ADA to Liqwid and also stake your ADA. You will receive two rewards:<ul><li>Lending reward via qTokens (APR).</li><li>Staking reward through the delegated pool.</li></ul>This way, your assets are working double-time and offer you an attractive return for using Liqwid.NOTE: Rewards must be claimed: <a target="_blank" rel="noopener noreferrer nofollow" href="https://liqwid-rewards.sundaeswap.finance/">https://liqwid-rewards.sundaeswap.finance/</a>

ADA Staking Rewards

By combining both supplier APR and staking rewards, you can maximize your returns. Here's how a combined yield example would work:Example 1 You supply 1,000 ADA to the Liqwid protocol.<ul><li>You earn 5% APR (Annual Percentage Rate) from lending your ADA.</li><li>Your ADA is also staking, earning 3% annual staking reward.</li></ul>Over the course of a year, you’d earn:<ul><li>Lending reward: 1,000 ADA x 5% = 50 ADA.</li><li>Staking reward: 1,000 ADA x 3% = 30 ADA.</li><li>Total reward = 80 ADA.</li></ul>This double-return means your 1,000 ADA is earning 8% annually instead of just 5% from lending alone, or just 3% from staking alone.

Combined Yield Examples

Earning Through Supplying and Staking

What Are Stablecoins?Stablecoins are digital assets designed to maintain a stable value, typically pegged to fiat currencies like the US Dollar. Within Liqwid, stablecoins provide a less volatile alternative for users engaging in lending and borrowing activities.Available Stablecoins on Liqwid:*<ul><li>DJED: An overcollateralized stablecoin native to the Cardano blockchain, designed to maintain price stability through algorithmic mechanisms.</li><li>iUSD: A synthetic stablecoin on Cardano, representing a claim on a basket of assets to ensure stability.</li><li>USDM: A fiat-backed stablecoin issued by Moneta (formerly Mehen Finance), fully backed 1:1 by USD held in U.S. bank accounts and money market funds. Native to the Cardano blockchain. Launched March 2024.</li><li>USDA: A fully fiat‑backed, Cardano‑native stablecoin by Anzens Inc., powered technically by EMURGO and fiat‑on/off ramps via Encryptus. It’s 1:1 USD‑backed and attested monthly. Designed for compliant DeFi and supported by global fiat rails.</li><li>USDC: A widely used stablecoin backed by the US Dollar, now available on Cardano through the Wanchain bridge.</li><li>USDT: Another major stablecoin, USDT has been proposed for integration into Liqwid's markets.</li><li>DAI: A decentralized stablecoin that has been proposed for support on Liqwid, aiming to provide additional options for users.</li></ul>Advantages of Stablecoins When Supplying/Borrowing:<ul><li>Reduced Volatility: Stablecoins maintain a relatively constant value, reducing the risk associated with price fluctuations common in other cryptocurrencies.</li><li>Security: They offer a secure means to engage in decentralized finance (DeFi) activities without significant exposure to market volatility.</li><li>Liquidity: Stablecoins are highly liquid, facilitating easy exchange and access within the DeFi ecosystem.</li></ul>

Available Stablecoins

The Health Factor is a key metric in the Liqwid protocol that determines the safety of your borrowing position. It is calculated by comparing the value of your collateral to the amount borrowed.Formula for Health Factor:Health Factor=Value of Collateral/Value of Loan<ul><li>A higher health factor indicates a safer position.</li><li>A lower health factor means the position is at greater risk of liquidation.</li></ul>

What Is the Health Factor?

Stablecoins and Borrowing Safety

The LQ token is integral to Liqwid’s ecosystem, as it serves as both a governance token and a reward mechanism. Here’s what makes it stand out:<ul><li>Staking &amp; Rewards: Stake your LQ tokens to earn a share of the protocol’s revenue.</li><li>Voting: Participate in governance by voting on key decisions like feature updates, token listings, or protocol changes.</li><li>Programmatic Rewards: Earn rewards for engaging with the platform, incentivizing active participation.</li></ul>

What Makes LQ Token Unique?

Staking LQ tokens allows users to participate in governance while earning rewards for securing the platform. Here’s how it works:1. What is Staking? Staking involves locking up your LQ tokens for a certain period in exchange for rewards. Stakers contribute to the stability of the protocol and help ensure that its economic model runs smoothly. In return, they receive protocol revenue as well as additional LQ tokens.2. How Are Rewards Calculated?Reward Pool: A portion of the fees generated by the protocol (such as lending and borrowing fees) is set aside for staking rewards.Staking Weight: The more LQ tokens you stake, the higher your share of the rewards pool. This is similar to how yield farming works in DeFi, where the amount of liquidity you contribute determines the rewards you earn.Formula:Staking Reward= [LQ Tokens Staked/Total LQ Tokens Staked]×Reward PoolSo, if you stake 1,000 LQ tokens and the total staked amount is 10,000 LQ tokens, your share of the staking rewards pool would be:Staking Reward=[1,000/10,000]×Reward Pool3. Claiming Rewards:Staked rewards are typically distributed in LQ tokens. You can claim your rewards periodically (weekly, monthly, or quarterly depending on the protocol’s settings).Example:If you stake 1,000 LQ tokens and the protocol generates 100,000 ADA in fees from lending and borrowing in a month, the reward pool will be a certain percentage of that 100,000 ADA. Based on your share of the total staked LQ tokens, you would receive a proportionate amount of the fees, which could be in ADA or additional LQ tokens.

Staking LQ Tokens for Rewards

LQ token holders are not just passive participants; they actively influence the protocol’s governance. Here’s how it works:1. Voting Power:The more LQ tokens you hold and stake, the more voting power you have in governance decisions. This means that your participation is not just about earning rewards—it’s about shaping the future of Liqwid. 2. Governance Proposals: Proposals can cover a wide range of topics, such as:Feature upgrades: Changes to existing features or the addition of new ones.Risk adjustments: Proposals to change risk parameters like interest rates or collateral requirements.Token listings: Deciding which new assets can be used within the protocoExample: Suppose a proposal is made to increase the collateralization ratio for borrowing ADA to ensure higher liquidity. As an LQ token holder, you can vote for or against this proposal, and your vote will directly influence the final decision. 3. Proposal Cycle:Proposals are submitted to the community.Voting is opened for a defined period (usually 7 days).Implementation happens if the proposal reaches the required threshold for approval. Formula for Voting Power:Voting Power = LQ Tokens Staked / Total LQ Tokens StakedSo, if you stake 500 LQ tokens and the total amount staked is 50,000 LQ tokens, your voting power would be:Voting Power = 500 / 50,000 = 1%This means that your vote will carry a weight of 1% in the decision-making process for the protocol.

Governance and Voting

Liqwid incentivizes active participation by distributing LQ tokens through its programmatic rewards system. These rewards are typically given for actions such as:<ul><li>Providing liquidity to lending pools.</li><li>Voting on governance proposals.</li><li>Participating in staking.</li></ul>Yield farming.Programmatic rewards are calculated dynamically based on how much you interact with the protocol. The more you engage, the more LQ tokens you can earn.

Programmatic Rewards for Participation

Although often referred to as programmatic distribution for legal reasons, this feature essentially acts as dividends for those who participate in the protocol. The net profits generated by Liqwid (e.g., from lending and borrowing fees) are distributed to stakers of LQ tokens, helping to boost their returns.1. How are Dividends Paid? The dividends are typically paid in LQ tokens or the asset of the user's choice (ADA, for example), based on the protocol’s revenue.2. Formula for Dividends:Dividends = Total Net Revenue × Percentage Allocated to LQ StakersExample: If the total net revenue generated by Liqwid in a quarter is 1,000,000 ADA, and the protocol allocates 20% of the net revenue to LQ stakers, then:Dividends = 1,000,000 ADA × 20% = 200,000 ADAThis 200,000 ADA would be distributed among LQ stakers according to their staking proportion.

Programmatic Distribution Rewards

LQ Token Utility and Governance

This course guides you through Liqwid’s dynamic rate system, dual-yield opportunities, and governance features — so you can supply, borrow, and participate in DeFi with confidence. All examples are for educational purposes only.

The Liqwid Finance Wisdom Course teaches you how to supply, borrow, and stake on Cardano’s leading lending protocol. It covers dynamic interest rates, market utilization, dual-yield opportunities, stablecoin use, risk management, and LQ governance—equipping you to make informed, confident DeFi decisions.

Liqwid Finance - Deep Dive

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