Lien (LIEN)

Lien

Type	ETH Derivative and stablecoin
Total supply	1.000.000
Website	https://lien.finance

 Basics

• Founded in:
• Mainnet release: 4-9-2020
• Based in:

• Aka Lien Finance or Lien Protocol
• The Lien protocol is a protocol for creating Options and Stablecoins from ETH.
• From EthHub #108 (6-4-2020):

"The Lien protocol allows anyone to create an ETH derivative in a simple, elegant way. The innovative features of this protocol include providing a secure derivatives market with no liquidation involved and enabling a fully decentralized stable coin designed to function without over-collateralization."

Token

Token allocation

• From their blog (28-8-2020):

50% Devs, 38% Community funds, 10% pre-sale and 2% for sale on FairSwap.

Utility

• From their blog (28-8-2020):

"A utility token that rewards the token holders with a rebate on the Lien protocol and FairSwap usage fees. The Lien protocol charges a fee when users mint the iDOL stable coin (0.2%) and when they exchange assets using FairSwap (0.3% — variable). Fees are collected in ETH or iDOL and are then distributed proportionally to holders of the Lien token as discounts/rebates every 28 days.

100% of Lien Protocol fees and 20% of FairSwap fees collected are attributed to Lien Token holders (80% goes to the liquidity providers).

A snapshot is taken every 28 days starting from August 8, UTC 13:31:50 (the fees will become redeemable immediately after the snapshot). Fees that are left unredeemed for 48 weeks will be forfeited and included in the next fee allocation pool."

Stablecoin

• From their website (8-4-2020):

"iDOL is a stablecoin backed by ethereum derivatives. Fully decentralized. No over-collateralization."

Tech

• Whitepaper can be read here (1-4-2020).
• Code can be viewed [insert here].
• Built on: Ethereum, ERC20

How it works

• From DeFi Weekly (15-4-2020):

"The basic idea works a little like this:

1. Anyone can deposit 1 ETH inside Lien, and they get back two tokens. One is called a Solid Bond Token (SBT) and the other is called a Liquid Bond Token (LBT)
2. The Solid Bond Token is meant to be a very low price of ETH which you can assume will be the lowest (big assumption, yes I know)
3. The Liquid Bond Token is meant to be the remaining value of that ETH which is speculative and tracks the price of ETH less the value of the SBT
4. A new stable coin can be minted by depositing the SBT
5. On maturity of the bond, LBT holders will be paid out the amount of the LBT
6. Users can hold SBT, LBT or both

LBTs can be leveraged in unique ways to create interesting derivatives/options and don’t require margin calls since if the price drops holders don’t have access to any ETH."

Their Other Projects

FairSwap

• From their blog (4-9-2020):

"Is a uniswap-inspired DEX with built in front-running prevention, combining the ideas of frequent batch auctioning with AMMs. It also has Dynamic Fee Pricing based on volatility."

Roadmap

• Can be found [Insert link here].

Audits

• Bug bounty program can be found [insert here].
• Had audits done (25-9-2020) by Consensys and Certik, who both helped out with the whitehack mentioned below.

Bugs/Hacks

• Had a vulnerability worth 25.000 ETH which Samczsun found out about and saved with a whitehat hack (25-9-2020).

Pros and Cons

Cons

• From DeFi Weekly (15-4-2020):

"The native stablecoin of Lien is called iDOL and relies on being backed by SBTs. However, at maturity of these bonds SBTs are destroyed and redeemed. This causes a problem where SBTs with different maturity dates will be forced to resolve their positions. Lien solves this through aggregating all SBTs inside a single contract and requiring users to extend or renew SBTs. This parts seems a bit shaky to me and I’d need to know more about it.

In the case that ETH falls below the SBT value, the price of IDOL fluctuates. I spoke to Lien and their response to this is that their coin is more like an “Investment Trust model” rather than an ultra stable stable coin. If you want hard redemption guarantees USDC is what they would recommend you hold instead although it comes with centralisation risks."

Team, Funding, Partnerships, etc.

Team

• Full team can be found [here].

• From their announcement (1-4-2020):

"The protocol is developed by a group of anonymous developers, making it highly resilient against government control."