Liquidity Rent
The BRCport Liquidity Rent feature is a technical marvel offering users the ability to lease liquidity from the BRCport treasury, creating liquidity pairs on decentralized exchanges. This technical overview delves into the core components and intricate mechanisms that define the Liquidity Rent feature, emphasizing its role in efficiently managing and renting liquidity for decentralized finance activities.
Key Components
Liquidity Rent Smart Contracts : BRCport utilizes smart contracts specifically designed for the Liquidity Rent feature. These contracts govern the process of leasing liquidity, managing user interactions, and facilitating the creation of liquidity pairs on decentralized exchanges.
Token Locking Mechanism : The Liquidity Rent feature incorporates a token locking mechanism, enabling users to deposit and lock supported BRC20 and ERC20 tokens. This mechanism ensures that users have a stake in the liquidity pool during the rental period.
Workflow
User Interaction : Users initiate the Liquidity Rent process by interacting with the Liquidity Rent smart contracts. This involves specifying the quantity of BRC20 tokens to be locked and the desired duration of the liquidity rental.
Token Locking and Verification : The Liquidity Rent smart contracts receive and verify the token locking transaction. The token locking mechanism ensures that the supported BRC20 tokens are deposited and locked securely
Treasury Funds Allocation : Following successful verification, the Liquidity Rent smart contract unlocks a particular amount of stablecoins for liquidity on the target blockchain (e.g., BEP20 or ERC20). These unlocked assets are always over collateralized as compared to the user's locked BRC20 tokens
Liquidity Provision on Decentralized Exchanges : Users can utilize the unlocked liquidity tokens to provide liquidity on decentralized exchanges, creating liquidity pairs and contributing to the overall liquidity on external blockchains.
Rental Fee Calculation : The Liquidity Rent smart contracts calculate rental fees based on the locked quantity of BRC20 tokens and the specified duration of the liquidity rental. Fees may vary depending on market conditions and platform policies.
Fee Payment and Discount with Platform Token : Users pay the calculated rental fees, and the Liquidity Rent smart contracts provide discounts of up to 50% when users choose to pay fees using the platform's native token ($BRCP). This incentivizes the use of the platform's token within the Liquidity Rent feature.
Supported Assets
Initial Asset Support : The Liquidity Rent feature initially supports the BRC20 token "$Ordi." Users can lease liquidity for $Ordi on external blockchains.
Expansion Plans : BRCport has plans to include more types of BRC20 tokens in the future, expanding the range of assets available for liquidity rental.
Security Measures
Smart Contract Audits : The Liquidity Rent smart contracts undergo thorough audits to identify and rectify vulnerabilities, ensuring the security and reliability of the codebase.
Decentralized Oracle Integration : Decentralized oracles provide real-time data for fee calculations, market conditions, and other parameters, enhancing the accuracy and security of the Liquidity Rent feature.
Token Locking Security Measures : The token locking mechanism is designed with robust security measures to prevent unauthorized access or tampering, ensuring the integrity of the locked BRC20 tokens.
Last updated
