Liqwid Finance
LQ
Evaluation Score
Overall rating on a scale of 0-10
Dimension Breakdown
AI Analysis
Comprehensive evaluation of the token
LQ is the native governance token of Liqwid Finance, an algorithmic non-custodial lending and borrowing protocol operating on the Cardano mainnet since Q1 2023. The project maintains active governance and technical development, supported by a 12-month product roadmap for V3 smart contract reimplementation in Aiken, funded core operations, and an active DAO forum executing on-chain proposals. The protocol has also completed third-party security reviews through Vacuumlabs, MLabs, and CertiK with no recorded exploits, hacks, or regulatory actions. However, significant fundamental risks limit the token's profile: market adoption remains weak with micro-cap valuation ($3.5M–$4.9M), extremely thin trading volume, and a ~99.8% drawdown from all-time highs. Furthermore, tokenomics lack direct revenue-sharing or deflationary drivers, team transparency is constrained by pseudonymous leadership, and conflicting supply data across aggregators creates tracking ambiguity. With all sections evaluated and no qualifying red-flag cap triggered, the weighted average score is 5.7.
Development Activity
Code updates and developer engagement
Community Support
Social media presence and community engagement
Tokenomics
Supply, distribution, and utility
Market & Use Case
Value proposition and competitive landscape
Team & Governance
Team background and project governance
Security & Audits
Security history and audit status
About Liqwid Finance (LQ)
Liqwid Finance (LQ) is the native governance and incentive token of Liqwid Finance, an algorithmic, non-custodial lending and borrowing protocol operating on the Cardano mainnet since the first quarter of 2023. Built by Liqwid Labs, the protocol enables users to supply and borrow supported digital assets. The LQ token is primarily used to exercise voting rights within the LiqwidDAO and can be staked to obtain yield boosts within the protocol.
The protocol is governed through on-chain proposals and an active governance forum, operating under a formal DAO Constitution. Liqwid Finance is undergoing a V3 smart contract reimplementation in Aiken and has maintained an audited code base through security reviews conducted by Vacuumlabs, MLabs, and CertiK. The token features a fixed maximum total supply of 21,000,000 LQ, with initial distributions including a 1.5% community airdrop and core team allocations on a two-year linear vesting schedule.
The project faces multiple market and structural challenges. LQ has experienced a severe price drawdown of approximately 99.8% from its all-time high of $125.70, operating with a micro-cap valuation between $3.5 million and $4.9 million alongside low trading liquidity. Furthermore, there are discrepancies across data aggregators regarding circulating supply (ranging from ~5.26 million to ~20.31 million), unpublished founder allocation percentages, and an absence of direct fee-sharing or deflationary burn mechanisms. Team transparency is also limited, as core contributors operate under pseudonymous handles rather than publicly verified identities.