💡FAQ

Frequently asked questions

Is Delik based on Ethereum?

Delik will be based on Ethereum blockchain because it is a fast, scalable, decentralized and low gas fee EVM compatible blockchain. Being EVM compatible makes various Ethereum L2s based DeFi protocols to easily launch on Ethereum main-net as well

What is Delik Finance?

Delik is a decentralized market making protocol which replaces the traditional capital inefficient ways of bootstrapping liquidity with it's game changing Liquidity-by-Staking model

What problems does Delik solve?

Delik aims to create a liquidity layer that enables easy liquidity bootstrapping for new gen DeFi protocols and facilitates single sided deposits for liquidity providers

How is LBS model better than liquidity mining ?

Liquidity mining is a costly and capital inefficient way of attracting liquidity which increases the selling pressure on protocol tokens and thus hinders it's price discovery. On the other hand LBS model allows protocol to either swap their token with DELIK, these tokens then become a part of protocol reserve of assets which are further used to provide liquidity to asset pairs. Also unlike LM where liquidity is temporary, Delik provides sustainable long term liquidity

What is Ideal Stage?

In ideal stage Delik will be able to provide liquidity and reward the LPs and LDs without DELIK token. This is possible only when we accrue enough PCA for every asset in the pool. PCA is accrued via DAO swaps, fees generation

How does Delik's Liquidity Mining differ from traditional Liquidity Mining?

Delik will start it's journey using a LM program which will be temporary, also as Delik has it's own Impermanent loss mitigation mechanism for LPs, our temporary LM program will be on a much smaller scale compared to traditional LMs as they have to reward the LPs with much higher amount of rewards as they suffer from IL