LockJar:
Lock ERC20 liquidity tokens without losing access to their value.
PROBLEM
Liquidity providers lock their liquidity tokens to assure users of continued availability of liquidity. However, current solutions prevent providers access to the value of their locked assets.
UniCrypt
LockJar
OUR SOLUTION
For each liquidity token locked, the smart contract mints an ERC1155 bond token that gives its owner the right to unlock and receive the corresponding liquidity token after the unlock date.
Lock
Unlock Date
Bob
LockJar Smart Contract
Trade
Bob
Billy
Joe
Unlock After Unlock Date
Joe
LockJar Smart Contract
OVERVIEW
2: Transferring
1: Locking
3: Redeeming
The user may sell any number of their Bond Tokens in the same process as every other ERC1155 token.
A user would like to lock their ERC20 tokens for 3 months. They use the lock function in the smart contract to lock up their tokens. In return, they receive an equal number of ERC1155 Bond Tokens..
Whoever owns a Bond Token at the end of the lockup period may use the unlock function in the smart contract to receive the corresponding ERC20 tokens.
BENEFITS
Greater flexibility for providers: providers of locked liquidity may exit their liquidity position by selling their bond tokens
Greater liquidity for liquidity pools:
Slippage will decrease as providers become more willing to offer locked liquidity.
Greater market insight:
Predict when LP tokens will be redeemed and thus when liquidity depth will decrease
FUTURE PLANS