cLQDR is the largest wrapped version of Liquid Driver's xLQDR token in the Fantom ecosystem. If you've been out of the loop on Liquid Driver or cLQDR though, there have been a lot of changes. But first, what is Liquid Driver?

What is Liquid Driver?

Liquid Driver ($LQDR) is a one stop shop for liquidity on Fantom. They allow users to stake their LPs and earn LQDR or have their LPs staked and autocompounded. Liquid Driver's massive position in inSpirit allows users of their Shadow Farms massive boosts and will soon allow holders of Liquid Driver's xLQDR token to direct emissions. As a project, Liquid Driver is constantly accumulating governance tokens for projects including Spiritswap and Hundred Finance, with ambitious plans to expand to other chains.

What is cLQDR?

xLQDR is the governance token for Liquid Driver. It allows you to share in the profits of their ecosystem and earn Fantom tokens such as Beets, BOO, and others. But in order to earn the highest APR possible you have to lock your LQDR for up to 2 years. A longer lock means higher rewards. Some users are scared away by this illiquid choice, missing out on everything Liquid Driver has to offer.

And this is where cLQDR steps in. cLQDR is a wrapped version of xLQDR, meaning it can be freely swapped or transferred. Rewards are autocompounded into more xLQDR so the tokens underlying cLQDR can increase every rewards cycle or be used to rebuy cLQDR under peg. For example at the time of this writing, 1 cLQDR is equal to 1.3257 LQDR. cLQDR takes a fee, but does the compounding for you and gives you flexibility.

What's changing?

cLQDR is currently run by Growth Defi, but they are handing over control of cLQDR to Liquid Driver as they are shifting their project away from Fantom to focus on Binance Smart Chain. There are a number of projects that have submitted plans to take over cLQDR, but more details are yet to be seen.

Is there a possible opportunity?

cLQDR uses a portion of rewards earned to buyback its token to maintain peg. It is currently ~5% off from its peg partially due to the uncertainty around the project, but the cLQDR model means that rewards will keep flowing and pushing the token back to peg. Furthermore, with cLQDR being used as collateral for Growth Defi's MOR stablecoin, liquidations and more volatility are possible. Being off peg, possible liquidations, and the overall bear market may have created an excellent opportunity in cLQDR, especially as Liquid Driver goes cross chain in the coming weeks.

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