vWIG as an Omni-LP

An intriguing strategy to address impermanent loss faced by liquidity providers (LPs) is observed through the outcomes of the Solidly system utilizing veSOLID. veSOLID operates akin to an LP token, as all LP swap fees from Solidly's AMM are channeled to veSOLID voters. Consequently, LPs essentially trade their swap fees for SOLID emissions, and veSOLID holders earn swap fees for LP tokens they endorse.

veSOLID possesses the ability to represent multiple LPs simultaneously, contingent on the user's vote. This dynamic empowers veSOLID to serve as a versatile, "omni" LP position, enabling users to seamlessly switch between diverse LPs devoid of the typical losses linked to such transitions.

However, this approach harbors certain limitations. veSOLID holders remain subject to the long-term performance of veSOLID, which mandates a 4-year lock.

Toupée Tech endeavors to build upon the insights gleaned from Solidly's outcomes to achieve omni-liquidity devoid of impermanent loss risk. To achieve this feat, Toupée Tech must fulfill four pivotal prerequisites:

• vWIG must establish a floor value: The integration of a token with a floor price introduces a safeguard against downside risk, allowing users to evaluate the risk of possessing voting power by juxtaposing the asset's market price and floor price.

• vWIG must prioritize liquidity: vWIG should lack a lock period and exhibit substantial liquidity for WIG.

• vWIG must promote capital efficiency: The system must facilitate risk-free borrowing against vWIG to optimize capital efficiency.

• vWIG should function as an omniLP for multiple AMMs: In contrast to veSOLID's role restricted to the Solidly AMM, vWIG aspires to operate as an omniLP across diverse AMMs, supporting varied AMM types and fostering competitive liquidity provisions as technological advancements unfold.

Toupée Tech's blueprint is meticulously designed to satisfy these prerequisites, offering a comprehensive resolution for omni-liquidity unburdened by impermanent loss risk. The bonding curve constitutes a pivotal mechanism in this framework, enabling single-sided liquidity provision for WIG.