Liqwid Mainnet Launch Checklist

Happy New Years Aquafarmers, we are excited to open 2023 with Liqwid’s mainnet launch. We’ve been deep in the final round of smart contract testing and app interface improvements since our initial testnet launch in November.

As we approach Liqwid’s mainnet launch, the core team at Liqwid Labs understands how essential our responsibility is to educate our community on all of the protocol features so that everyone can make informed decisions. Educational content including user guides and updated documentation will all be available for you to best navigate the protocol features while remaining aware of the known risk vectors every lending and borrowing protocol is faced with.

We wanted to first thank our community for your patience, support and positive energy throughout 2022 as we developed and tested the protocol. You can expect an official launch date closer to the completion of the security audit but for now let’s discuss some of the last remaining workstreams before we’re 100% mainnet ready; a final checklist of sorts.

Smart Contracts

Pre-launch the developers have prioritized Liqwid contract testing using Plutip, a Cardano tool Plutus dApp developers use to spin up disposable testnets and run their contracts with a focus on integration testing and contract debugging. Developers are completing the final contract testing for Liquidation, Income Outputs, Repay and ModifyLoan. All other Liqwid contracts (e.g. Supply, Borrow, Redeem, Staking registration/delegation, Batching/action distribution, Market bootstrap) have completed Plutip testing. In addition to Plutip, developers have completed manual testing of oracles (i.e. the latest market deployment on preview testnet consumes live price data directly from the oracle contract) and the liquid staking workflow.

A community multisig for Admin control on specific market actions is being implemented with members from Liqwid Labs, MLabs, Minswap Labs and the Liqwid Community Managers.

Integration

Developers are starting the frontend integration of liqwid-offchain main repo into the app interface. The updates include changes to the Javascript API encompassing all of our latest feature additions (liquidate, staking, oracle price feed) and performance improvements.

A prerequisite task to this workstream starting was configuration work for bundling scripts into a JavaScript bundle. Liqwid Project Manager recently completed this task and tested the latest dev dashboard UI updates. We have a new testnet market initialized with configured oracle parameters for the ADA market and have successfully completed supply (qADA mint) transactions. Once we test the remaining market actions (borrow, repay, withdraw) from the dev dashboard UI on this latest API version mainnet integration will be complete.

Infrastructure

An open source liquidation bot is being developed to enable anyone to run a liquidation bot and earn a discount on the collateral of default borrowers by repaying their underwater loan positions in part or full. The liquidation bot will query the outstanding loan per borrow market and automatically call the liquidation function for the largest undercollateralized loans denominated in the asset the liquidation bot operator is targeting. Calling the liquidation function will repay the underwater loan in part or full depending on the borrow markets closeFactor, an asset specific parameter that determines how much may be liquidated from default borrowers in a single transaction.

The liquidation bot is currently implemented for only a single loan, this means we have a basic API call that we can use to liquidate default loans, and it has a strategy that would be useful for writing the feature complete Liquidation Bot.

To achieve feature completeness the liquidation bot which must have updated functionality to support running in a loop, checking for the best Loans to liquidate, and automatically redeeming the qTokens for underlying assets (e.g. in Aave’s liquidation API the liquidator has the option to receive aTokens or redeem them for the underlying collateral assets). All of this functionality will be included in the coming updates to the liquidation bot. In addition developers are writing the setup to select for specific default loans to repay.

A prerequisite task to the completion of this workstream is liquidation CLI work (calling the liquidate API from the dev dashboard UI) currently in final testing. Once this CLI work concludes the final task in the liquidation bot workstream is managing the packaging and deployment story. Liqwid Project Manager and DevOps engineers will collaborate on this task starting soon.

Liqwid Batching System (LBS)

Complete test coverage for the Liqwid Batching System (LBS) contracts has been completed ahead of mainnet launch. All batching related issues have been resolved and the developers are working through one off-chain batching-adjacent issue with the Repay action.

The only remaining task for the LBS workstream is CLI updates to complete the batching bot (the code for this functionality is already written).

Liqwid v1 Audit

The audit is currently in the code review phase with the liqwid core developer lead proactively responding to auditor requests and patching fixes to issues in a timely manner. The completion of the code review phase is one of the final workstreams before the protocol is mainnet deployment ready.

We look forward to sharing an official launch date with our community closer to the completion of the audit. Stay tuned!

-Liqwid Labs Core Dev Team