<h1 id="d0915725-8dc6-44b7-87d5-b5ca8a464c13" data-toc-id="d0915725-8dc6-44b7-87d5-b5ca8a464c13"><strong>Module 1 — What is Liqwid Finance?</strong></h1><div data-type="horizontalRule"><hr></div><h2 id="62ba6bb3-e22a-46bf-b635-ced84771306c" data-toc-id="62ba6bb3-e22a-46bf-b635-ced84771306c">🧭 Overview</h2><p>Welcome to <strong>Liqwid Finance</strong>, Cardano’s decentralized money market — a protocol where your crypto assets <strong>work for you</strong> through transparent, automated smart contracts.</p><p>No paperwork. No credit checks. No custodians.<br>You always remain in full control of your assets.</p><div data-type="horizontalRule"><hr></div><h2 id="001da992-d15a-411d-b522-c94174ef42b2" data-toc-id="001da992-d15a-411d-b522-c94174ef42b2">⚙️ The Basics</h2><h3 id="138a9435-56f3-42a5-9e12-da84a3ecb10f" data-toc-id="138a9435-56f3-42a5-9e12-da84a3ecb10f"><strong>Decentralized &amp; Automated</strong></h3><p>Liqwid is Cardano’s largest <strong>lending and borrowing protocol</strong>, powered entirely by smart contracts that execute transactions automatically.</p><h3 id="81d54565-1a26-46e8-9136-c419b3494fa9" data-toc-id="81d54565-1a26-46e8-9136-c419b3494fa9"><strong>Dual Functionality</strong></h3><p>You can participate as both a <strong>lender</strong> and a <strong>borrower</strong>:</p><h4 id="c4373069-bdf5-4f23-85f0-2f3ed6bc9458" data-toc-id="c4373069-bdf5-4f23-85f0-2f3ed6bc9458">• As a Lender</h4><ul><li><p>Deposit assets such as ADA or stablecoins.</p></li><li><p>Earn <strong>variable interest</strong> as borrowers use your funds.</p></li><li><p>Continue earning <strong>ADA staking rewards</strong> while your ADA is supplied.</p></li></ul><h4 id="613f4c9a-94fa-43e9-b177-e0fe5a78228f" data-toc-id="613f4c9a-94fa-43e9-b177-e0fe5a78228f">• As a Borrower</h4><ul><li><p>Use your supplied assets as <strong>collateral</strong> to borrow stablecoins.</p></li><li><p>Access liquidity <strong>without selling your crypto</strong>, keeping exposure to future price growth.</p></li></ul><div data-type="horizontalRule"><hr></div><h2 id="fc09954d-9453-480c-ab09-ee84885cd138" data-toc-id="fc09954d-9453-480c-ab09-ee84885cd138">🔄 How It Works</h2><h3 id="e5d05304-90f8-414a-91b1-44a7fb6636ab" data-toc-id="e5d05304-90f8-414a-91b1-44a7fb6636ab"><strong>Lending Made Simple</strong></h3><ol><li><p>Deposit assets into a Liqwid market.</p></li><li><p>Receive <strong>qTokens</strong> — tokens that represent your deposit.</p></li><li><p>Your qTokens continuously earn interest as borrowers use your assets.</p></li></ol><h3 id="9f84e78a-b5d0-49f3-a4a1-77b7582cb5ac" data-toc-id="9f84e78a-b5d0-49f3-a4a1-77b7582cb5ac"><strong>Borrowing with Confidence</strong></h3><ul><li><p>Use your deposited crypto as collateral to borrow up to ≈ <strong>80.9 %</strong> of its value (depending on asset type).</p></li><li><p>All loans and repayments occur automatically through secure, audited smart contracts.</p></li><li><p>You can <strong>repay anytime</strong> — no fixed dates or manual approvals.</p></li></ul><div data-type="horizontalRule"><hr></div><h2 id="fcd214e4-580c-4dfb-a1be-6870cb608609" data-toc-id="fcd214e4-580c-4dfb-a1be-6870cb608609">💡 Why Use Liqwid Finance?</h2><h3 id="0adc3739-bd39-4ac8-bc04-e552b8908382" data-toc-id="0adc3739-bd39-4ac8-bc04-e552b8908382"><strong>1️⃣ Earn While You Hold</strong></h3><ul><li><p>Generate interest on your crypto without sacrificing staking rewards.</p></li><li><p>Access liquidity by borrowing against your assets instead of selling them.</p></li></ul><h3 id="8a232772-bb63-48cb-ab8f-7028bf611488" data-toc-id="8a232772-bb63-48cb-ab8f-7028bf611488"><strong>2️⃣ Build Advanced Strategies</strong></h3><ul><li><p>Combine lending and borrowing positions to optimize yield or hedge risk.</p></li><li><p>Integrate with Cardano DeFi protocols for more sophisticated portfolio moves.</p></li></ul><h3 id="7e44570c-7444-44e0-a36a-de4268bc45a9" data-toc-id="7e44570c-7444-44e0-a36a-de4268bc45a9"><strong>3️⃣ Proven and Trusted</strong></h3><ul><li><p>With <strong>$100 million + in total value locked</strong>, Liqwid is Cardano’s leading lending protocol.</p></li><li><p>Supported by an active community and transparent on-chain governance.</p></li></ul><div data-type="horizontalRule"><hr></div><h2 id="bf337751-521a-49c4-9956-73350ca5c4d5" data-toc-id="bf337751-521a-49c4-9956-73350ca5c4d5">🏛️ Community &amp; Governance</h2><p>Liqwid DAO governs key parameters and upgrades through token-holder voting.<br>Every major decision — from collateral factors to reward rates — is proposed and ratified by the community.</p><div data-type="horizontalRule"><hr></div><h2 id="1356712d-f157-4ea7-a408-85d113fd6884" data-toc-id="1356712d-f157-4ea7-a408-85d113fd6884">🚀 Next Step</h2><p>You now understand what Liqwid Finance is and why it exists.<br>Let’s explore <strong>how money markets work</strong> and get you ready to make your first supply or borrow transaction on Cardano.</p>

What is Liqwid Finance?

<h2 id="ffba85e7-0b21-44ed-9ce4-860fb79603b3" data-toc-id="ffba85e7-0b21-44ed-9ce4-860fb79603b3">💡 The Basics</h2><p>Imagine a financial system where <strong>everything happens automatically</strong> — no paperwork, no credit checks, and no middlemen.</p><p>That’s what <strong>Liqwid Finance</strong> enables on <strong>Cardano</strong>: a transparent, decentralized money market powered entirely by smart contracts.</p><div data-type="horizontalRule"><hr></div><h2 id="8b4d9532-a5ca-4584-92f4-1b62197c035f" data-toc-id="8b4d9532-a5ca-4584-92f4-1b62197c035f">🔁 How It Works</h2><h3 id="29dfc742-abed-415f-a143-d67cbda70497" data-toc-id="29dfc742-abed-415f-a143-d67cbda70497"><strong>For Suppliers</strong></h3><ul><li><p>Deposit your crypto assets into a Liqwid market.</p></li><li><p>Earn <strong>interest automatically</strong> as borrowers use your funds.</p></li><li><p>Withdraw anytime — <strong>no lock-ups</strong>.</p></li><li><p>Maintain <strong>full control</strong> of your assets at all times.</p></li></ul><h3 id="555144c2-ec00-4b52-a3b9-8ca6acfeae6a" data-toc-id="555144c2-ec00-4b52-a3b9-8ca6acfeae6a"><strong>For Borrowers</strong></h3><ul><li><p>Supply crypto as <strong>collateral</strong>.</p></li><li><p>Borrow instantly against that collateral.</p></li><li><p><strong>No credit checks</strong> or manual approval process.</p></li><li><p>Repay flexibly — on your own schedule.</p></li></ul><div data-type="horizontalRule"><hr></div><h2 id="fc6936e6-a84c-4695-8d17-b6801c697d1e" data-toc-id="fc6936e6-a84c-4695-8d17-b6801c697d1e">📊 Interest Rates: Supply &amp; Demand in Action</h2><p>Liqwid’s interest rates adjust <strong>automatically</strong> based on how much of the market’s liquidity is being used:</p><ul><li><p><strong>High demand → higher rates</strong></p></li><li><p><strong>Low demand → lower rates</strong></p></li></ul><p>This creates a <strong>self-balancing system</strong> where both lenders and borrowers benefit from real-time, market-driven adjustments.</p><div data-type="horizontalRule"><hr></div><h2 id="b063777b-d7bd-42bf-8e43-2d737412e2b8" data-toc-id="b063777b-d7bd-42bf-8e43-2d737412e2b8">🔐 The Power of Non-Custodial Lending</h2><p>When using Liqwid:</p><ul><li><p><strong>Your assets stay in your control.</strong></p></li><li><p>Funds are never held by a central party.</p></li><li><p>All transactions are executed securely by <strong>Cardano smart contracts</strong>.</p></li><li><p>You maintain transparency and autonomy every step of the way.</p></li></ul><p></p>

Understanding Money Markets

<h1 id="59438b5d-3066-4422-a2c0-5af6ad0374af" data-toc-id="59438b5d-3066-4422-a2c0-5af6ad0374af"><strong>Module 1.3 — What is a Lombard Loan?</strong></h1><div data-type="horizontalRule"><hr></div><h2 id="32c8e0a0-14c6-4254-ac61-f49d609f9d62" data-toc-id="32c8e0a0-14c6-4254-ac61-f49d609f9d62">🏦 The Concept</h2><p>A <strong>Lombard Loan</strong> (also known as <strong>Lombard Credit</strong>) is a <strong>secured loan</strong> backed by your own assets — known as <em>collateral</em>.</p><p>Traditionally, banks offer Lombard loans to clients who pledge stocks, bonds, or other securities as security for a cash loan.</p><p><strong>Liqwid Finance</strong> brings this same concept on-chain — allowing you to <strong>borrow against your crypto</strong> without selling it.</p><div data-type="horizontalRule"><hr></div><h2 id="1b44d69f-e6c0-4382-87f7-c48be55e2e6e" data-toc-id="1b44d69f-e6c0-4382-87f7-c48be55e2e6e">💡 Real-World Example</h2><p>Imagine you hold <strong>10,000 ADA</strong> worth <strong>$5,000</strong>, and you need <strong>$2,000</strong> for an investment opportunity but don’t want to sell your ADA.</p><p>With a <strong>Lombard-style loan on Liqwid</strong>, you can:</p><ul><li><p>Keep your ADA (and <strong>continue earning staking rewards</strong>)</p></li><li><p>Borrow <strong>stablecoins</strong> against your ADA collateral</p></li><li><p>Maintain <strong>upside exposure</strong> if ADA’s price rises</p></li><li><p>Access liquidity to invest or cover expenses</p></li><li><p>Avoid triggering a <strong>taxable event</strong></p></li></ul><div data-type="horizontalRule"><hr></div><h2 id="d31a9062-a3ce-49fa-9049-546fcf7412ab" data-toc-id="d31a9062-a3ce-49fa-9049-546fcf7412ab">🌟 Key Benefits</h2><ul><li><p><strong>Access liquidity</strong> while keeping your crypto</p></li><li><p><strong>No fixed repayment schedule</strong> — repay anytime</p></li><li><p><strong>Competitive, transparent interest rates</strong></p></li><li><p><strong>Continue staking rewards</strong> on your ADA collateral</p></li><li><p><strong>Retain ownership</strong> and long-term exposure to your assets</p></li></ul><div data-type="horizontalRule"><hr></div><h2 id="d2e30e34-3e16-43e5-93d1-5818b8941c80" data-toc-id="d2e30e34-3e16-43e5-93d1-5818b8941c80">🧭 Why It Matters</h2><p>Liqwid empowers you to <strong>unlock the value</strong> of your crypto without giving it up.<br>This decentralized version of a Lombard loan keeps you in control — <strong>your assets, your yield, your freedom</strong>.</p>

Benefits of a Lombard Loan?

<h2 id="7cb717b9-a325-496c-92de-a158216824e0" data-toc-id="7cb717b9-a325-496c-92de-a158216824e0">⚖️ Key Concepts</h2><img src="https://files.slack.com/files-pri/T01J7LUSJMB-F09NA11QYJD/image.png" alt="image.png"><p></p><img src="https://res.cloudinary.com/dhn1ctlcq/image/upload/v1761134859/thpcyi6p8vqxibuw37ax.png"><h3 id="7a3a4f78-dea4-4c63-aedc-5ff9cbb23ac0" data-toc-id="7a3a4f78-dea4-4c63-aedc-5ff9cbb23ac0"><strong>Loan-to-Value (LTV)</strong></h3><p>Represents how much you’ve borrowed relative to your collateral’s value.</p><p><strong>Formula:</strong><br><code>LTV = Borrowed Value ÷ Collateral Value</code></p><div data-type="horizontalRule"><hr></div><h3 id="c0d3c7c5-3ee0-43b4-a175-e619d7c41eee" data-toc-id="c0d3c7c5-3ee0-43b4-a175-e619d7c41eee"><strong>Health Factor (HF)</strong></h3><p>Measures how safe your loan is before liquidation.</p><p><strong>Formula:</strong><br><code>HF = (Collateral Value × Liquidation Threshold) ÷ Borrowed Value</code></p><p><strong>Interpretation:</strong></p><ul><li><p><strong>HF &gt; 1 →</strong> Loan is healthy</p></li><li><p><strong>HF ≤ 1 →</strong> Loan can be liquidated</p></li></ul><div data-type="horizontalRule"><hr></div><h2 id="24f64d91-fb55-4f10-a742-5a8d496aaf89" data-toc-id="24f64d91-fb55-4f10-a742-5a8d496aaf89">📊 Example Scenarios</h2><table style="min-width: 150px;"><colgroup><col style="min-width: 25px;"><col style="min-width: 25px;"><col style="min-width: 25px;"><col style="min-width: 25px;"><col style="min-width: 25px;"><col style="min-width: 25px;"></colgroup><tbody><tr><th colspan="1" rowspan="1"><p>Case</p></th><th colspan="1" rowspan="1"><p>Collateral</p></th><th colspan="1" rowspan="1"><p>Liquidation Threshold</p></th><th colspan="1" rowspan="1"><p>Borrowed Value</p></th><th colspan="1" rowspan="1"><p>HF</p></th><th colspan="1" rowspan="1"><p>Risk Buffer</p></th></tr><tr><td colspan="1" rowspan="1"><p><strong>A</strong></p></td><td colspan="1" rowspan="1"><p>$2,000 ADA</p></td><td colspan="1" rowspan="1"><p>81%</p></td><td colspan="1" rowspan="1"><p>$1,200 (60% LTV)</p></td><td colspan="1" rowspan="1"><p><strong>1.35</strong></p></td><td colspan="1" rowspan="1"><p>~25% ADA drop triggers liquidation</p></td></tr><tr><td colspan="1" rowspan="1"><p><strong>B</strong></p></td><td colspan="1" rowspan="1"><p>$2,000 ADA</p></td><td colspan="1" rowspan="1"><p>81%</p></td><td colspan="1" rowspan="1"><p>$1,060 (53% LTV)</p></td><td colspan="1" rowspan="1"><p><strong>1.53</strong></p></td><td colspan="1" rowspan="1"><p>~33% ADA drop triggers liquidation</p></td></tr></tbody></table><p><strong>Why it matters:</strong></p><ul><li><p>At <strong>1.33 HF</strong>, a 25% ADA drop could liquidate your position.</p></li><li><p>At <strong>1.5 HF</strong>, you can withstand a 33% drop — a much safer cushion in volatile markets.</p></li></ul><div data-type="horizontalRule"><hr></div><h2 id="42883cce-3337-46ab-8a88-b4a98147077f" data-toc-id="42883cce-3337-46ab-8a88-b4a98147077f">🔁 Lifecycle of a Loan</h2><h3 id="e87dd343-3ff5-423c-8a14-39fa2cdfd436" data-toc-id="e87dd343-3ff5-423c-8a14-39fa2cdfd436"><strong>1️⃣ Initiate a Loan</strong></h3><ul><li><p>Supply a supported asset as <strong>collateral</strong>.</p></li><li><p>Each asset has a <strong>collateral factor</strong> (e.g., ADA = 70%).</p></li><li><p><strong>Maximum Borrow Amount</strong> = <code>Collateral Value × Collateral Factor</code></p></li></ul><p><strong>Example:</strong></p><ul><li><p>1,000 ADA × $2 = $2,000 collateral</p></li><li><p>Collateral factor = 70% → Max borrow = <strong>$1,400</strong></p></li></ul><div data-type="horizontalRule"><hr></div><h3 id="1e02290e-8e95-42a8-b980-3218de38a110" data-toc-id="1e02290e-8e95-42a8-b980-3218de38a110"><strong>2️⃣ Loan Origination Fee</strong></h3><ul><li><p><strong>1%</strong> of borrowed amount.</p></li><li><p>Split <strong>50/50</strong> between <strong>LQ stakers</strong> and the <strong>DAO Treasury</strong>.</p></li></ul><div data-type="horizontalRule"><hr></div><h3 id="107090c9-2a5a-425b-bcfe-7d2ee1a8faed" data-toc-id="107090c9-2a5a-425b-bcfe-7d2ee1a8faed"><strong>3️⃣ Repaying the Loan</strong></h3><ul><li><p>Repay full borrowed asset + <strong>accrued interest</strong>.</p></li><li><p>You can add collateral or repay anytime — even if <strong>HF &lt; 1</strong>, as long as your transaction confirms before liquidation.</p></li></ul><div data-type="horizontalRule"><hr></div><h2 id="29846f14-e6d6-4496-9f77-6d0afe00bd00" data-toc-id="29846f14-e6d6-4496-9f77-6d0afe00bd00">⚡ Liquidation Process</h2><p>When <strong>HF drops below 1</strong>:</p><ul><li><p>Your position becomes <strong>eligible for liquidation</strong>.</p></li><li><p><strong>Liquidators</strong> can repay part or all of your loan in exchange for your collateral at a discount (the <strong>liquidation bonus</strong>).</p></li></ul><p>Each market sets its own bonus (e.g., <strong>ADA = 10%</strong>).</p><p><strong>Example:</strong></p><ul><li><p>ADA price falls from <strong>$2 → $1.50</strong></p></li><li><p>Collateral = <strong>$1,500</strong></p></li><li><p>Liquidation threshold = <strong>$1,050</strong></p></li><li><p>Borrowed = <strong>$1,100 → Loan liquidated</strong></p></li><li><p>Liquidator repays $1,100 and receives ADA collateral at a <strong>10% discount</strong></p></li></ul><div data-type="horizontalRule"><hr></div><h2 id="0427961b-fa36-47f8-8419-d784912c89cb" data-toc-id="0427961b-fa36-47f8-8419-d784912c89cb">🧮 Liquidation Incentive</h2><p>Liquidators are <strong>financially rewarded</strong> for keeping the protocol healthy:</p><ul><li><p>They repay risky loans using their own assets.</p></li><li><p>They receive <strong>discounted collateral</strong> as a reward.</p></li><li><p><strong>Liqwid</strong> takes <strong>no fee or margin</strong> — all proceeds go to liquidators.</p></li></ul><div data-type="horizontalRule"><hr></div><h2 id="f3a22eb9-abac-47d7-af09-a59a62ece4ec" data-toc-id="f3a22eb9-abac-47d7-af09-a59a62ece4ec">🚫 No Margin Calls, No Auto-Liquidation</h2><p>Liqwid does <strong>not issue warnings</strong> or request extra collateral automatically.<br>You must monitor your <strong>Health Factor</strong> on the app dashboard.</p><p>If your HF falls below 1, you can still recover before liquidation by:</p><ul><li><p><strong>Adding collateral</strong></p></li><li><p><strong>Repaying part of your debt</strong></p></li></ul><p>If a position stays underwater and no one liquidates it, it becomes <strong>bad debt</strong>, which can temporarily reduce supplier yield until markets rebalance.</p><div data-type="horizontalRule"><hr></div><h2 id="3cc4e7e4-a190-446f-8a85-5ea62143b472" data-toc-id="3cc4e7e4-a190-446f-8a85-5ea62143b472">🔁 Summary</h2><table style="min-width: 75px;"><colgroup><col style="min-width: 25px;"><col style="min-width: 25px;"><col style="min-width: 25px;"></colgroup><tbody><tr><th colspan="1" rowspan="1"><p>State</p></th><th colspan="1" rowspan="1"><p>Description</p></th><th colspan="1" rowspan="1"><p>Recommended Action</p></th></tr><tr><td colspan="1" rowspan="1"><p><strong>HF &gt; 1</strong></p></td><td colspan="1" rowspan="1"><p>Loan is healthy</p></td><td colspan="1" rowspan="1"><p>No action needed</p></td></tr><tr><td colspan="1" rowspan="1"><p><strong>HF ≤ 1</strong></p></td><td colspan="1" rowspan="1"><p>Loan can be liquidated</p></td><td colspan="1" rowspan="1"><p>Add collateral or repay</p></td></tr><tr><td colspan="1" rowspan="1"><p><strong>Bad Debt</strong></p></td><td colspan="1" rowspan="1"><p>Debt &gt; Collateral</p></td><td colspan="1" rowspan="1"><p>Supplier yield temporarily reduced</p></td></tr></tbody></table><div data-type="horizontalRule"><hr></div><h2 id="37da3ab3-6c3a-44c8-a16c-09a1f173957d" data-toc-id="37da3ab3-6c3a-44c8-a16c-09a1f173957d">💡 Dual Perspective</h2><ul><li><p><strong>Suppliers:</strong> Earn more when utilization rises.</p></li><li><p><strong>Borrowers:</strong> Pay more when utilization rises.<br>Both depend on the same <strong>interest rate model</strong> — high demand boosts both lending yields and borrowing costs.</p></li></ul><div data-type="horizontalRule"><hr></div><h2 id="6791d233-ed60-42da-9b3d-2733d1f116ca" data-toc-id="6791d233-ed60-42da-9b3d-2733d1f116ca">✅ Educational Reminder</h2><p>This module is for <strong>educational purposes only</strong> and does <strong>not constitute financial advice</strong>.<br>Always monitor your Health Factor and manage your risk accordingly.</p>

Risk Management: LTV, Health Factor, and Liquidation

<h2 id="c7b851ac-a6ac-468e-a1d4-a40fd05ccbed" data-toc-id="c7b851ac-a6ac-468e-a1d4-a40fd05ccbed">⚙️ What Is Leverage?</h2><p><strong>Leverage</strong> lets you increase your exposure to an asset by <strong>borrowing against your existing holdings</strong>.<br>It’s a way to <strong>amplify your position</strong> without adding new capital — but it also amplifies risk.</p><p>Think of it as using your crypto as collateral to buy more of the same asset.</p><div data-type="horizontalRule"><hr></div><h2 id="5c9590fb-56b2-4f32-8a29-acf179e1b81d" data-toc-id="5c9590fb-56b2-4f32-8a29-acf179e1b81d">🧩 Simple Example: Leveraging ADA</h2><h3 id="40e2bc50-070c-4030-9856-bd4d39caa0aa" data-toc-id="40e2bc50-070c-4030-9856-bd4d39caa0aa"><strong>Initial Position</strong></h3><ul><li><p>You supply <strong>2,000 ADA</strong> worth <strong>$1,000</strong> (at $0.50 each).</p></li><li><p>This is your <strong>base position</strong> — your own capital.</p></li></ul><div data-type="horizontalRule"><hr></div><h3 id="4ca51a4d-e366-498a-a26a-060867cb236f" data-toc-id="4ca51a4d-e366-498a-a26a-060867cb236f"><strong>Adding Leverage</strong></h3><ol><li><p><strong>Borrow $500 DJED</strong> (≈ 50 % LTV for safety).</p></li><li><p>Use the borrowed DJED to <strong>buy more ADA</strong>.</p></li><li><p>At $0.50 per ADA, you purchase <strong>1,000 more ADA</strong>.</p></li></ol><div data-type="horizontalRule"><hr></div><h3 id="a045f4c4-5185-40f4-b23f-d7db05a4724d" data-toc-id="a045f4c4-5185-40f4-b23f-d7db05a4724d"><strong>Final Position</strong></h3><table style="min-width: 75px;"><colgroup><col style="min-width: 25px;"><col style="min-width: 25px;"><col style="min-width: 25px;"></colgroup><tbody><tr><th colspan="1" rowspan="1"><p>Component</p></th><th colspan="1" rowspan="1"><p>Amount</p></th><th colspan="1" rowspan="1"><p>Value (USD)</p></th></tr><tr><td colspan="1" rowspan="1"><p><strong>Original ADA</strong></p></td><td colspan="1" rowspan="1"><p>2,000 ADA</p></td><td colspan="1" rowspan="1"><p>$1,000</p></td></tr><tr><td colspan="1" rowspan="1"><p><strong>Borrowed ADA (bought with DJED)</strong></p></td><td colspan="1" rowspan="1"><p>1,000 ADA</p></td><td colspan="1" rowspan="1"><p>$500</p></td></tr><tr><td colspan="1" rowspan="1"><p><strong>Total ADA held</strong></p></td><td colspan="1" rowspan="1"><p>3,000 ADA</p></td><td colspan="1" rowspan="1"><p><strong>$1,500 total exposure</strong></p></td></tr></tbody></table><p>You now hold <strong>3,000 ADA</strong>, even though you only started with <strong>$1,000</strong>.</p><div data-type="horizontalRule"><hr></div><h2 id="c69d33ed-3896-41ad-b6c4-2ba39dec602e" data-toc-id="c69d33ed-3896-41ad-b6c4-2ba39dec602e">📊 Why This Matters</h2><p>Leverage allows you to:</p><ul><li><p><strong>Increase potential returns</strong> if ADA’s price rises.</p></li><li><p><strong>Retain ADA staking rewards</strong> while using ADA as collateral.</p></li><li><p><strong>Stay liquid</strong> without selling your holdings.</p></li></ul><p>But it also means:</p><ul><li><p>Price drops can reduce your <strong>Health Factor (HF)</strong> faster.</p></li><li><p>You risk <strong>liquidation</strong> if your HF ≤ 1.</p></li></ul><div data-type="horizontalRule"><hr></div><h2 id="788e52cd-1b64-4d89-9a42-93e97c1181f6" data-toc-id="788e52cd-1b64-4d89-9a42-93e97c1181f6">⚖️ Key Points to Remember</h2><ul><li><p>✅ <strong>Start conservatively:</strong> Keep your LTV low (≤ 50 %) to maintain safety.</p></li><li><p>👁️ <strong>Monitor your Health Factor:</strong> Check it frequently in the Liqwid dashboard.</p></li><li><p>🧠 <strong>Plan for volatility:</strong> Know how you’ll act if ADA’s price moves ± 20–30 %.</p></li><li><p>⚠️ <strong>Understand risk:</strong> Leverage multiplies both gains and losses.</p></li></ul><div data-type="horizontalRule"><hr></div><h2 id="eeaa8200-850a-4b00-8c05-93c503243f59" data-toc-id="eeaa8200-850a-4b00-8c05-93c503243f59">🧭 Takeaway</h2><p>Used wisely, leverage on Liqwid can be a <strong>powerful strategy</strong> for advanced users — helping you compound positions and manage liquidity efficiently.</p><p>Used carelessly, it can lead to <strong>rapid liquidation</strong>.<br>Always balance opportunity with safety.</p>

Usecase 1: Using Leverage

<h2 id="d0c76a3e-06ee-4579-8532-4cebc9a2a665" data-toc-id="d0c76a3e-06ee-4579-8532-4cebc9a2a665">💧 Quick Access to Funds</h2><p>Need liquidity fast — but don’t want to sell your crypto?<br><strong>Liqwid Finance</strong> lets you unlock the value of your assets instantly through decentralized borrowing.</p><p>No banks. No credit checks. No waiting.</p><div data-type="horizontalRule"><hr></div><h2 id="588f06de-c13d-4ce0-823a-01d81f53128c" data-toc-id="588f06de-c13d-4ce0-823a-01d81f53128c">💡 Real-World Example</h2><p>Let’s say you have an unexpected expense.</p><h3 id="0b4d91d2-7e05-4a67-89f2-3184d7fadff6" data-toc-id="0b4d91d2-7e05-4a67-89f2-3184d7fadff6"><strong>Your Position</strong></h3><ul><li><p>You hold <strong>5,000 ADA</strong></p></li><li><p>You need <strong>$1,000</strong> for urgent bills</p></li><li><p>You believe ADA’s price will rise soon</p></li></ul><div data-type="horizontalRule"><hr></div><h3 id="5e9994cb-2f6e-44ef-9af6-1714c788fc45" data-toc-id="5e9994cb-2f6e-44ef-9af6-1714c788fc45"><strong>The Solution</strong></h3><ol><li><p>Supply your <strong>5,000 ADA</strong> as collateral.</p></li><li><p>Borrow <strong>$1,000 in stablecoins</strong> directly from the Liqwid market.</p></li><li><p>Pay approximately <strong>1.5% interest over 3 months</strong>.</p></li><li><p>Keep full exposure to your ADA’s future upside.</p></li></ol><div data-type="horizontalRule"><hr></div><h3 id="24e2bb33-7dc3-49e3-9921-92a8f5ae192a" data-toc-id="24e2bb33-7dc3-49e3-9921-92a8f5ae192a"><strong>The Outcome</strong></h3><ul><li><p>✅ Access liquidity immediately</p></li><li><p>🚫 Avoid selling your ADA</p></li><li><p>🕓 Skip any approval or waiting period</p></li><li><p>📈 Retain potential gains if ADA appreciates</p></li></ul><div data-type="horizontalRule"><hr></div><h2 id="aa5d5c4f-22ad-471a-8278-67526f351345" data-toc-id="aa5d5c4f-22ad-471a-8278-67526f351345">🌟 Key Benefits</h2><ul><li><p><strong>Instant access to funds</strong> — anytime, from your wallet</p></li><li><p><strong>No credit checks or paperwork</strong></p></li><li><p><strong>Flexible repayment</strong> — repay when convenient</p></li><li><p><strong>Keep your crypto position intact</strong></p></li></ul><div data-type="horizontalRule"><hr></div><h2 id="80cdae45-185b-4501-bd33-51c92a806b2b" data-toc-id="80cdae45-185b-4501-bd33-51c92a806b2b">🧭 Takeaway</h2><p>With Liqwid, your crypto becomes a <strong>productive asset</strong>, not a locked one.<br>You can borrow securely against it to cover expenses or reinvest — all while keeping your long-term exposure.</p>

Usecase 2: Access Liquidity Immediately

<h2 id="723c64bf-1582-499e-ad01-fc909419782d" data-toc-id="723c64bf-1582-499e-ad01-fc909419782d">📚 The Concept</h2><p><strong>Portfolio diversification</strong> means spreading your assets across different opportunities to <strong>reduce risk</strong> and <strong>stabilize returns</strong>.</p><p>With <strong>Liqwid Finance</strong>, you can borrow stablecoins against your crypto and deploy them into other <strong>DeFi opportunities</strong> — all while keeping your original position intact.</p><p>This allows your collateral to stay productive while you explore new yield sources.</p><div data-type="horizontalRule"><hr></div><h2 id="6176bea8-000f-40a4-b20d-461ce01750a1" data-toc-id="6176bea8-000f-40a4-b20d-461ce01750a1">🔁 Step-by-Step Example</h2><h3 id="fc3746ea-e6f3-4438-b141-904afe367821" data-toc-id="fc3746ea-e6f3-4438-b141-904afe367821"><strong>Starting Position</strong></h3><ul><li><p>You hold <strong>4,000 ADA</strong> worth <strong>$2,000</strong> (at $0.50 each).</p></li><li><p>You want to earn yield in other DeFi platforms but <strong>don’t want to sell your ADA</strong>.</p></li></ul><div data-type="horizontalRule"><hr></div><h3 id="8561fea1-556b-47ac-aeaa-295afdbe51a2" data-toc-id="8561fea1-556b-47ac-aeaa-295afdbe51a2"><strong>Using Liqwid</strong></h3><ol><li><p><strong>Supply ADA</strong> as collateral on Liqwid.</p></li><li><p><strong>Borrow $800</strong> in stablecoins (40% LTV).</p></li><li><p><strong>Deploy</strong> the borrowed funds into another yield opportunity — for example, a stablecoin liquidity pool.</p></li></ol><div data-type="horizontalRule"><hr></div><h3 id="06f2a8e7-8046-447f-901c-e76890901587" data-toc-id="06f2a8e7-8046-447f-901c-e76890901587"><strong>Example Calculation</strong></h3><table style="min-width: 75px;"><colgroup><col style="min-width: 25px;"><col style="min-width: 25px;"><col style="min-width: 25px;"></colgroup><tbody><tr><th colspan="1" rowspan="1"><p>Action</p></th><th colspan="1" rowspan="1"><p>Rate</p></th><th colspan="1" rowspan="1"><p>Annual Result</p></th></tr><tr><td colspan="1" rowspan="1"><p>Earn yield on new DeFi farm</p></td><td colspan="1" rowspan="1"><p>+10% on $800</p></td><td colspan="1" rowspan="1"><p><strong>+$80/year</strong></p></td></tr><tr><td colspan="1" rowspan="1"><p>Pay borrow interest on Liqwid</p></td><td colspan="1" rowspan="1"><p>−5% on $800</p></td><td colspan="1" rowspan="1"><p><strong>−$40/year</strong></p></td></tr><tr><td colspan="1" rowspan="1"><p><strong>Net profit (assuming stable prices)</strong></p></td><td colspan="1" rowspan="1"><p></p></td><td colspan="1" rowspan="1"><p><strong>+$40/year</strong></p></td></tr></tbody></table><p>You’ve now generated additional yield <strong>without selling ADA</strong> or reducing your core holdings.</p><div data-type="horizontalRule"><hr></div><h2 id="c9d1e925-47c9-42b8-92d4-1c8c9fd22b89" data-toc-id="c9d1e925-47c9-42b8-92d4-1c8c9fd22b89">⚠️ Important Considerations</h2><ul><li><p><strong>Monitor your Health Factor (HF):</strong> Keep it safely above 1.3–1.5.</p></li><li><p><strong>Track yield changes:</strong> DeFi returns fluctuate over time.</p></li><li><p><strong>Watch for impermanent loss:</strong> If farming in liquidity pools.</p></li><li><p><strong>Stay conservative:</strong> Avoid borrowing beyond safe LTV limits.</p></li></ul><div data-type="horizontalRule"><hr></div><h2 id="e928127e-267c-4769-bce3-d915e6dcdf62" data-toc-id="e928127e-267c-4769-bce3-d915e6dcdf62">💡 Takeaway</h2><p>Diversifying through Liqwid gives you <strong>flexibility and capital efficiency</strong> — enabling you to grow your portfolio across DeFi platforms while your ADA continues to earn staking rewards and potential appreciation.</p>

Usecase 3: Portfolio Diversification

Use these questions to test your understanding of Liqwid Finance and its key features.

Practice Questions

Introduction to Liqwid Finance

<h2 id="d43c5cba-714e-4172-927a-1c433798c7f6" data-toc-id="d43c5cba-714e-4172-927a-1c433798c7f6">🖥️ Welcome to Your Dashboard</h2><p>The <strong>Liqwid Dashboard</strong> is your all-in-one command center — where you can monitor deposits, track loans, and review your overall performance in real time.</p><p>Everything you need to manage your position efficiently is displayed clearly on one page.</p><div data-type="horizontalRule"><hr></div><h2 id="3beece3b-dbcc-410c-9e7b-efdd79f44358" data-toc-id="3beece3b-dbcc-410c-9e7b-efdd79f44358">🔍 Key Sections at a Glance</h2><h3 id="f06ae28f-bd06-4508-990b-04acd9638242" data-toc-id="f06ae28f-bd06-4508-990b-04acd9638242"><strong>Supplies</strong></h3><p>Shows the <strong>total assets</strong> you’ve deposited into Liqwid markets to earn interest.<br>You can monitor how much each asset is generating and withdraw anytime.</p><div data-type="horizontalRule"><hr></div><h3 id="a0b8576b-6c81-4aab-b873-8e8a2fbdfd08" data-toc-id="a0b8576b-6c81-4aab-b873-8e8a2fbdfd08"><strong>Borrowings</strong></h3><p>Displays how much you currently owe on <strong>open loans</strong>.<br>Includes details like borrowed amount, asset type, and current interest rate.</p><div data-type="horizontalRule"><hr></div><h3 id="394cd9a0-8d22-499b-bf62-0644841b9596" data-toc-id="394cd9a0-8d22-499b-bf62-0644841b9596"><strong>Net APY</strong></h3><p>Represents your <strong>overall earnings</strong> after factoring in both your supply interest and any borrowing costs.<br>A positive Net APY means your supplied assets are earning more than your loan costs.</p><div data-type="horizontalRule"><hr></div><h3 id="59ab01ab-59b3-4934-984b-c54b55529db7" data-toc-id="59ab01ab-59b3-4934-984b-c54b55529db7"><strong>Health Factor (HF)</strong></h3><p>Your <strong>safety indicator</strong> for borrowing.</p><ul><li><p><strong>HF &gt; 1:</strong> Position is healthy.</p></li><li><p><strong>HF ≤ 1:</strong> Position is at risk of liquidation.</p></li></ul><p>Keeping your HF above 1.3–1.5 is recommended for safer leverage management.</p><div data-type="horizontalRule"><hr></div><h2 id="a844b12e-4da2-4cf5-b9e9-253784aeaba9" data-toc-id="a844b12e-4da2-4cf5-b9e9-253784aeaba9">🧭 Staying Informed</h2><p>Keep an eye on these dashboard metrics to:</p><ul><li><p>Track your daily <strong>returns and interest earnings</strong>.</p></li><li><p>Manage <strong>borrowing risk</strong> and collateral levels.</p></li><li><p>Maintain a healthy balance between <strong>earnings</strong> and <strong>exposure</strong>.</p></li></ul><p>Your dashboard is the heartbeat of your Liqwid experience — check it regularly to make informed decisions.</p>

Navigation Overview

<h2 id="f3136d26-2154-4b33-8283-faf09451a42d" data-toc-id="f3136d26-2154-4b33-8283-faf09451a42d">💹 Welcome to the Markets Page</h2><p>The <strong>Liqwid Markets page</strong> is your go-to space for exploring every asset available in the protocol.<br>Here, you can view real-time <strong>rates</strong>, <strong>liquidity</strong>, and <strong>risk parameters</strong> — helping you make informed supply and borrow decisions.</p><div data-type="horizontalRule"><hr></div><h2 id="25f8666f-13de-48a3-993e-906a046edaf1" data-toc-id="25f8666f-13de-48a3-993e-906a046edaf1">📊 What You’ll See</h2><h3 id="5fbe5b89-7118-4539-b999-0906e09aa80d" data-toc-id="5fbe5b89-7118-4539-b999-0906e09aa80d"><strong>Asset List</strong></h3><p>View all supported tokens at a glance.<br>Each row displays current <strong>Supply APY</strong> and <strong>Borrow APY</strong>, letting you compare potential returns and costs across markets.</p><div data-type="horizontalRule"><hr></div><h3 id="65320c5e-4840-4f5a-b9b9-e014f9607bdf" data-toc-id="65320c5e-4840-4f5a-b9b9-e014f9607bdf"><strong>Oracle Price</strong></h3><p>Shows the <strong>real-time asset price</strong> used by Liqwid’s smart contracts to calculate:</p><ul><li><p>Collateral value</p></li><li><p>Borrowing limits</p></li><li><p>Liquidation thresholds</p></li></ul><p>Oracle prices update automatically to reflect market conditions.</p><div data-type="horizontalRule"><hr></div><h3 id="eadb4e81-adca-4e70-8068-6c0a2439ab6e" data-toc-id="eadb4e81-adca-4e70-8068-6c0a2439ab6e"><strong>Total Supply &amp; Total Liquidity</strong></h3><p>Understand <strong>market depth</strong> instantly:</p><ul><li><p><strong>Total Supply:</strong> Amount of the asset provided by lenders.</p></li><li><p><strong>Total Liquidity:</strong> Available balance left to borrow.<br>Healthy liquidity ensures smooth borrowing and repayment.</p></li></ul><div data-type="horizontalRule"><hr></div><h3 id="2e1cc073-3407-423e-8a22-1315d519be41" data-toc-id="2e1cc073-3407-423e-8a22-1315d519be41"><strong>Accepted as Collateral</strong></h3><p>Indicates whether an asset can be <strong>used to secure a loan</strong>.<br>Collateral-eligible assets display a checkmark — meaning they support borrowing positions within the protocol.</p><div data-type="horizontalRule"><hr></div><h3 id="c2425f93-ca4c-4e1b-b761-7e0c315c5ee2" data-toc-id="c2425f93-ca4c-4e1b-b761-7e0c315c5ee2"><strong>Details &amp; Advanced Data</strong></h3><p>Click any market for a detailed breakdown including:</p><ul><li><p><strong>Liquidation Threshold</strong></p></li><li><p><strong>Maximum LTV</strong></p></li><li><p><strong>Reserve Factor</strong></p></li><li><p><strong>Risk parameters</strong> and <strong>interest rate model</strong></p></li></ul><p>This page is ideal for assessing <strong>asset-specific risk</strong> before supplying or borrowing.</p>

Markets Page

<h2 id="f17decd6-5003-4f0e-8458-27ff9a8e1791" data-toc-id="f17decd6-5003-4f0e-8458-27ff9a8e1791">📈 Explore Market Insights</h2><p>Ready to go deeper into Liqwid’s market data?<br>The <strong>Analytics Page</strong> provides a complete view of real-time activity, historical performance, and risk indicators — empowering you to make informed lending and borrowing decisions.</p><div data-type="horizontalRule"><hr></div><h2 id="c68cbdc2-c522-4836-aa3b-98f8525bc3ad" data-toc-id="c68cbdc2-c522-4836-aa3b-98f8525bc3ad">🧩 Key Sections</h2><h3 id="8e198f7b-fa6a-4916-86d0-44b34f5f3cd4" data-toc-id="8e198f7b-fa6a-4916-86d0-44b34f5f3cd4"><strong>Oracle Tab</strong></h3><p>Displays <strong>live asset prices</strong> pulled directly from trusted oracles.<br>These prices are used to calculate your:</p><ul><li><p>Collateral value</p></li><li><p>Borrow limits</p></li><li><p>Health Factor and liquidation thresholds</p></li></ul><div data-type="horizontalRule"><hr></div><h3 id="a53a6b90-c653-4dc9-8c30-1fdee3855fb2" data-toc-id="a53a6b90-c653-4dc9-8c30-1fdee3855fb2"><strong>Info Panel</strong></h3><p>A high-level overview of protocol health — showing:</p><ul><li><p><strong>Total Supplies &amp; Borrows</strong></p></li><li><p><strong>Utilization Rates</strong></p></li><li><p><strong>Market Distribution</strong> and other key indicators</p></li></ul><p>Perfect for understanding how active and balanced the protocol is.</p><div data-type="horizontalRule"><hr></div><h3 id="2ddeb291-b76f-4b16-8d4c-58edff456812" data-toc-id="2ddeb291-b76f-4b16-8d4c-58edff456812"><strong>Liquidity Tab</strong></h3><p>Compare current <strong>supply</strong> and <strong>borrow</strong> liquidity across all assets.</p><ul><li><p>See which markets are in high demand.</p></li><li><p>Identify where liquidity is tightening or expanding.</p></li></ul><p>This helps gauge where yield opportunities or risks may emerge.</p><div data-type="horizontalRule"><hr></div><h3 id="6e46f48e-dd2e-426b-b4d8-2fdcf070cab3" data-toc-id="6e46f48e-dd2e-426b-b4d8-2fdcf070cab3"><strong>Time Filters</strong></h3><p>Analyze protocol data across multiple time frames:</p><ul><li><p><strong>1 Day, 1 Week, 1 Month, 3 Months, 1 Year</strong><br>Spot usage trends, liquidity shifts, and changing interest rate dynamics over time.</p></li></ul><div data-type="horizontalRule"><hr></div><h2 id="b6d4fa4f-a6ef-45e1-81c4-7bf88a026d41" data-toc-id="b6d4fa4f-a6ef-45e1-81c4-7bf88a026d41">💡 Strategic Use</h2><p>Use these insights to:</p><ul><li><p>Monitor market demand and utilization patterns.</p></li><li><p>Adjust your positions proactively.</p></li><li><p>Manage risk and optimize returns through data-driven decisions.</p></li></ul><p>The Analytics page transforms data into <strong>strategic clarity</strong> — making it an essential tool for active Liqwid users.</p>

 Analytics Page

<h2 id="8e2be1a8-3d2a-48d4-b8fc-cc3d685f00d6" data-toc-id="8e2be1a8-3d2a-48d4-b8fc-cc3d685f00d6">🪙 Understanding the Staking Page</h2><p>The <strong>Staking Page</strong> gives you a complete overview of your <strong>LQ token holdings</strong> — showing how your staked tokens contribute to both <strong>governance</strong> and <strong>reward generation</strong> within the Liqwid ecosystem.</p><div data-type="horizontalRule"><hr></div><h2 id="b1980fc6-0a65-4068-9010-18d5cd5653af" data-toc-id="b1980fc6-0a65-4068-9010-18d5cd5653af">📊 Key Sections</h2><h3 id="1c0f865c-56b4-4628-ad11-643a3ebe28ab" data-toc-id="1c0f865c-56b4-4628-ad11-643a3ebe28ab"><strong>Balance &amp; Voting Power</strong></h3><p>At the top, you’ll see:</p><ul><li><p>Your <strong>total LQ balance</strong></p></li><li><p>How much is <strong>currently staked</strong></p></li><li><p>Your <strong>governance voting power</strong></p></li></ul><p>This section helps you track how your staked tokens strengthen your influence in the DAO.</p><div data-type="horizontalRule"><hr></div><h3 id="c19adcff-bd24-4dba-ba83-18bce52521fb" data-toc-id="c19adcff-bd24-4dba-ba83-18bce52521fb"><strong>Manage Your Stake</strong></h3><p>Use the <strong>“Create Stake”</strong> or <strong>“Modify Stake”</strong> buttons to:</p><ul><li><p>Start staking LQ</p></li><li><p>Adjust an existing stake</p></li><li><p>Unstake when desired</p></li></ul><p>Actions execute directly through Liqwid’s smart contracts — no intermediaries or delays.</p><div data-type="horizontalRule"><hr></div><h3 id="a433a02d-ee6f-4bc0-90f0-ae0b1036c4df" data-toc-id="a433a02d-ee6f-4bc0-90f0-ae0b1036c4df"><strong>Delegated Power</strong></h3><p>Quickly view:</p><ul><li><p><strong>Who you’re delegating to</strong> (if applicable)</p></li><li><p>Key protocol stats on the right-hand side, including:</p><ul><li><p>Current <strong>LQ price</strong></p></li><li><p><strong>Total supply</strong></p></li><li><p><strong>Aggregate staked amount</strong></p></li></ul></li></ul><p>This provides full visibility into your governance participation and staking performance.</p><div data-type="horizontalRule"><hr></div><h2 id="51e85641-97aa-4500-8bf3-7ab37b622df2" data-toc-id="51e85641-97aa-4500-8bf3-7ab37b622df2">💡 Why Stake?</h2><p>Staking your <strong>LQ tokens</strong> allows you to:</p><ul><li><p>Earn a share of <strong>protocol rewards</strong></p></li><li><p>Gain <strong>voting power</strong> in Liqwid DAO proposals</p></li><li><p>Support <strong>long-term protocol stability and decentralization</strong></p></li></ul><div data-type="horizontalRule"><hr></div><h2 id="8a4afca1-6235-416a-bc08-8b79fd5ab396" data-toc-id="8a4afca1-6235-416a-bc08-8b79fd5ab396">🧭 Takeaway</h2><p>The Staking Page is where your participation becomes active governance.<br>By staking LQ, you help shape Liqwid’s future while earning sustainable on-chain rewards.</p>

Staking Page

<h2 id="0d75af3f-2126-4413-af7d-4be131bc51df" data-toc-id="0d75af3f-2126-4413-af7d-4be131bc51df">🏛️ Welcome to Liqwid Governance</h2><p>The <strong>Governance Page</strong> is where Liqwid’s community of LQ holders <strong>shapes the future of the protocol</strong>.<br>Here, every decision — from new feature proposals to risk parameter updates — is guided by <strong>decentralized voting</strong>.</p><p>Your <strong>staked LQ</strong> gives you the right to participate, propose, and influence outcomes.</p><div data-type="horizontalRule"><hr></div><h2 id="bbdf8fb6-d7aa-4c09-b07d-855addbfb5bd" data-toc-id="bbdf8fb6-d7aa-4c09-b07d-855addbfb5bd">📊 Key Sections</h2><h3 id="c4348ca1-2cf2-4033-a976-05212b52d196" data-toc-id="c4348ca1-2cf2-4033-a976-05212b52d196"><strong>LQ Balance &amp; Voting Power</strong></h3><p>On the left, you’ll see your:</p><ul><li><p><strong>Total staked LQ</strong></p></li><li><p><strong>Voting power</strong> based on your stake</p></li><li><p>Options to <strong>stake more</strong> or <strong>delegate</strong> your voting rights to a trusted participant</p></li></ul><p>This section determines your level of influence within the Liqwid DAO.</p><div data-type="horizontalRule"><hr></div><h3 id="8fbe410f-9c12-49b1-bf3b-c43d020519b9" data-toc-id="8fbe410f-9c12-49b1-bf3b-c43d020519b9"><strong>Proposals &amp; Executions</strong></h3><p>Browse all active and past proposals.<br>For each one, you can:</p><ul><li><p>View <strong>proposal details</strong>, voting progress, and quorum thresholds</p></li><li><p>Check <strong>execution status</strong> after successful proposals are enacted</p></li><li><p>Track <strong>protocol upgrades</strong> and governance milestones in real time</p></li></ul><div data-type="horizontalRule"><hr></div><h3 id="d88ba961-63fc-4556-a086-84659a67937e" data-toc-id="d88ba961-63fc-4556-a086-84659a67937e"><strong>Voting Filters</strong></h3><p>Use filters to organize proposals by:</p><ul><li><p><strong>Category</strong> (e.g., Markets, Risk, Treasury, or DAO Operations)</p></li><li><p><strong>Status</strong> (Active, Pending, Executed, or Rejected)</p></li></ul><p>You can <strong>vote directly</strong> or <strong>delegate</strong> your voting power to another DAO member — keeping your LQ working for you even when you’re not actively voting.</p><div data-type="horizontalRule"><hr></div><h2 id="eddef664-936c-4c68-a530-ef9c3ff0da09" data-toc-id="eddef664-936c-4c68-a530-ef9c3ff0da09">🗳️ Why Participate?</h2><p>Governance is what keeps Liqwid <strong>transparent, adaptable, and community-driven</strong>.<br>By voting, you:</p><ul><li><p>Influence the protocol’s direction</p></li><li><p>Contribute to sound risk management</p></li><li><p>Strengthen Liqwid’s decentralization and long-term growth</p></li></ul><div data-type="horizontalRule"><hr></div><h2 id="5dbb7db8-de5a-4f6e-9beb-d0f2d91b3de0" data-toc-id="5dbb7db8-de5a-4f6e-9beb-d0f2d91b3de0">💬 Final Thought</h2><p>Every proposal, every vote, and every staked token matters.<br>Your participation is what makes Liqwid not just a protocol — but a <strong>community-owned financial ecosystem</strong>.</p>

Governance Page

<h2 id="c2fc82e1-4473-43dd-879c-2d919f32f4fc" data-toc-id="c2fc82e1-4473-43dd-879c-2d919f32f4fc">🌐 Customize Your Language Preference</h2><p>Liqwid supports multiple languages so you can navigate the app in the language you’re most comfortable with.</p><h3 id="757e8124-4576-4792-ac50-c230c3e38286" data-toc-id="757e8124-4576-4792-ac50-c230c3e38286"><strong>How to Change the Language</strong></h3><ol><li><p><strong>Click the ⚙️ Settings icon</strong> in the top-right corner of the app.</p></li><li><p><strong>Open the “Language” dropdown menu.</strong></p></li><li><p><strong>Select your preferred language</strong> from the available options.</p></li></ol><p>The interface will instantly update — no refresh or restart needed.</p><div data-type="horizontalRule"><hr></div><h2 id="9440f9c7-933e-473c-96a2-eb711ce7b294" data-toc-id="9440f9c7-933e-473c-96a2-eb711ce7b294">💡 Tip</h2><p>Your selected language preference will be remembered automatically for your next visit.</p>

Changing the language settings

Understanding the Liqwid Dashboard

<h2 id="74a9e4a5-0e6f-4d49-984c-53ffe389b269" data-toc-id="74a9e4a5-0e6f-4d49-984c-53ffe389b269">💧 1. Supply</h2><p>Supplying assets is the first step to earning yield on Liqwid.</p><p>When you supply to a Liqwid market, you make your assets available for others to borrow — and in return, you <strong>earn interest automatically</strong>.</p><div data-type="horizontalRule"><hr></div><h3 id="304988cb-a5f3-4c6b-bd90-605d8e6b5d1d" data-toc-id="304988cb-a5f3-4c6b-bd90-605d8e6b5d1d"><strong>How It Works</strong></h3><ol><li><p><strong>Deposit assets</strong> into a supported Liqwid market.</p></li><li><p>Receive <strong>qTokens</strong>, which represent your deposit and continuously accrue interest.</p></li><li><p><strong>Start earning interest</strong> from the moment your transaction confirms.</p></li><li><p>If supplying ADA, you’ll <strong>keep earning staking rewards</strong> in addition to your lending yield.</p></li></ol><div data-type="horizontalRule"><hr></div><h2 id="214917cf-5cd6-4b95-a5b3-5e8552770bc7" data-toc-id="214917cf-5cd6-4b95-a5b3-5e8552770bc7">💡 Tip</h2><p>You can withdraw your supplied assets anytime, along with all the interest earned — your funds always remain <strong>non-custodial</strong> and under your control.</p>

1: Connect and Supply

<h2 id="e9a1bcec-702c-4fa3-ab8c-d2196ddaa830" data-toc-id="e9a1bcec-702c-4fa3-ab8c-d2196ddaa830">💸 2. Borrow</h2><p>Borrowing on Liqwid allows you to <strong>access liquidity without selling your crypto</strong>.<br>You can use your supplied assets as <strong>collateral</strong> to open a loan — all managed automatically by smart contracts.</p><div data-type="horizontalRule"><hr></div><h3 id="78dec30f-716c-4847-81ae-94c350ea5370" data-toc-id="78dec30f-716c-4847-81ae-94c350ea5370"><strong>How It Works</strong></h3><ol><li><p><strong>Use supplied assets as collateral.</strong><br>Your deposited assets secure your loan and determine how much you can borrow.</p></li><li><p><strong>Borrow up to 75%</strong> of your collateral’s current market value (exact amount depends on the asset’s collateral factor).</p></li><li><p><strong>Pay interest only</strong> on the amount you’ve borrowed.</p></li><li><p><strong>Repay anytime.</strong><br>There’s <strong>no fixed schedule</strong> — you stay in control of your repayment timeline.</p></li></ol><div data-type="horizontalRule"><hr></div><h2 id="08696bd3-eee3-4f36-be72-f4df6322fb54" data-toc-id="08696bd3-eee3-4f36-be72-f4df6322fb54">💡 Tip</h2><p>Maintain your <strong>Health Factor (HF)</strong> above 1.3–1.5 to keep your position safe from liquidation during market volatility.</p>

2: Borrow

<h2 id="59482926-82ca-4902-8a78-b5fc6e4e6659" data-toc-id="59482926-82ca-4902-8a78-b5fc6e4e6659">🔄 3. Repay</h2><p>Repaying your borrowed assets on Liqwid is simple and flexible.<br>You can settle your loan <strong>fully or partially</strong> at any time — all on-chain and without intermediaries.</p><div data-type="horizontalRule"><hr></div><h3 id="4bd072fc-96e3-43d7-9da4-db706a2e4f67" data-toc-id="4bd072fc-96e3-43d7-9da4-db706a2e4f67"><strong>How It Works</strong></h3><ol><li><p><strong>Repay borrowed assets</strong> whenever you choose — no deadlines or penalties.</p></li><li><p><strong>Make full or partial repayments</strong> depending on your strategy.</p></li><li><p>Each repayment <strong>reduces your interest costs</strong> in real time.</p></li><li><p>As your debt decreases, <strong>collateral is freed up</strong> — letting you borrow again or withdraw your assets.</p></li></ol><div data-type="horizontalRule"><hr></div><h2 id="62cd6f18-ecd6-473e-b73c-4a3b26d2a204" data-toc-id="62cd6f18-ecd6-473e-b73c-4a3b26d2a204">💡 Tip</h2><p>You can repay directly from your wallet using the same asset you borrowed (e.g., repay in DJED if you borrowed DJED).<br>Check your <strong>Health Factor (HF)</strong> after repayment to confirm your position’s improved safety.</p>

3: Repay

<h2 id="fabf1628-ef74-48da-83b2-2cf34a910448" data-toc-id="fabf1628-ef74-48da-83b2-2cf34a910448">💼 4. Withdraw</h2><p>Withdrawing on Liqwid is fast, flexible, and fully on-chain.<br>You can remove your supplied assets <strong>whenever you choose</strong>, along with all the interest you’ve earned.</p><div data-type="horizontalRule"><hr></div><h3 id="9944314f-8794-491a-98e2-86960e9da92b" data-toc-id="9944314f-8794-491a-98e2-86960e9da92b"><strong>How It Works</strong></h3><ol><li><p><strong>Withdraw your supplied assets</strong> directly from the market at any time.</p></li><li><p>There are <strong>no lock-up periods</strong> — your funds remain under your control.</p></li><li><p>Your withdrawal automatically includes <strong>all accrued interest</strong>.</p></li><li><p>Withdrawals are <strong>subject to market liquidity</strong>, meaning your assets can be withdrawn as long as there’s sufficient available balance in the pool.</p></li></ol><div data-type="horizontalRule"><hr></div><h2 id="ba2930fb-9861-4584-a9dd-9e5eff0af850" data-toc-id="ba2930fb-9861-4584-a9dd-9e5eff0af850">💡 Tip</h2><p>If a market is highly utilized, you can <strong>partially withdraw</strong> or wait until more liquidity becomes available.<br>Your assets continue earning yield until they’re fully withdrawn.</p>

4: Withdraw

Core Actions

<p>Learn the basics: how Liqwid works, navigate the dashboard, and complete your first transactions. Perfect for beginners wanting to understand money markets on Cardano.</p>

These courses teach you how to use Liqwid Finance effectively - from basic operations to advanced yield strategies. 

Liqwid Finance: Getting Started

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