Liquifi

Liquifi is a protocol for decentralized liquidity pool exchanges that combines constant product AMM with some ideas from order book exchanges. Liquifi allows traders to place time-locked swap operations to overcome the price slippage and front-running problems. These operations are not completed immediately, but last for some period (e.g. 5 minutes), during which the liquidity is gradually moving to and from the pool without price bouncing. Arbitrageurs and other traders can now act in parallel, making counter-deals that compensate each other and eliminate price slippage. This also removes the front-running problem, as front-runners cannot benefit from long operations. Usual swaps and flash swaps are also available with lower gas consumption. All transactions are performed completely on-chain within the Liquifi smart contracts, without any controlling party. Liquifi was launched in Binance Smart Chain on March, 12 2021. Liquidity providers are able to invest their crypto assets in Liquifi pools and earn both fees and LQF governance tokens. Liquifi is a fair launch project - LQF tokens can only be obtained by investing in Liquifi pools with fair distribution according to the share of each liquidity provider. For that liquidity providers should stake their pool tokens (received when investing in pools) to the Liquifi governance contract (this can be done in the Governance section of the Liquifi UI). The staked tokens can be removed later at any time. LQF tokens give to their holders full control over the evolvement and parameters of the Liquifi protocol: to change liquidity provider fee, to turn on and off some protocol features like zero fee for arbitrageurs, to control quorum, veto, and other thresholds. When newer versions of the Liquifi protocol will arrive, they will also be applied using the existing governance procedures. The Liquifi smart contracts are open-source under GPLv3 license. The code is available on github: https://github.com/liquifi-org. The security of the Liquifi smart contracts is externally audited by pessimistic.io, see the report: https://pessimistic.io/blog/liquifi