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DeFi Ethereum

What is the Lien token used for?

Lien token is


Lien is a utility token that awards Lien protocol users with fee discounts when transacting on the protocol and FairSwap.

Lien token is used for


Fees to Lien token holders

  • 0.2% – The Lien protocol, to mint the iDol stable coin (100% distributed)
  • 0.3% – FairSwap exchange (20% distributed)

Fees are collected in ETH or iDOL and are then distributed proportionally to holders of the Lien Token as discounts/rebates at the end of each month.

What is Lien protocol


Lien protocol on Ethereum allows for creation of a derivative and a stable component of ETH.

How Lien protocol works


Lien protocol consists of Lien tokens and iDol stablecoins.

And to create on-chain derivatives, the protocol generates two tokens from 1 ETH.

Tokens

  • The Liquid Bond Token (LBT)
  • The Stable Bond Token (SBT).

The LBT is made to absorb most of ETH’s volatility and makes it work like a 2x call option on ETH.

Call option

  • Option to buy the asset during a specific timeframe (maturity).
  • and at a specific price (strike price).
  • The design of the LBT makes the SBT stable against the US dollar and makes it works as a collateral for iDOL.

Using Lien step-by-step


1. The Lien protocol smart contract converts 1 ETH into 1 SBT and 1 LBT with the same maturity date and strike price.

2. The SBT is sent to the iDOL smart contract and is used as collateral to mint iDOL stablecoins equal to half the dollar value of ETH.

3. Near maturity date – SBT is auctioned off for iDOL.

4. At maturity, the smart contract pays the SBT holder half the ETH value in step 1.

5. Remaining ETH is paid to the LBT holder. (If the price of ETH upon maturity is lower than the strike price, SBT holder receives all and LBT holder receives nothing).

iDOL stablecoin


iDOL is a stablecoin that is a feature and consequence of creating derivatives on Lien.

Lien token issuance


Total supply: 1 000 000 tokens


Allocation (80% locked / 20 % unlocked)

  • 10 % Pre-sale
  • 38 % Community Funds
  • 50 % Devs
  • 2 % Fairswap

Team tokens vested linearly over 2 years.

Docs


Protocol

Paper

Similar projects


Lien price


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