Introducing AIQ, a yield bearing derivative of IQ that utilizes curve stablepools and hiIQ staking to deliver 30% APR to AIQ holders.
The beta version of AIQ was deployed 4 months by the Astral Protocol. Quite recently, AIQ was upgraded to V2 which changed the yield distribution method to Merkl.
Currently, DK, IK and NOIR utilize AIQ in liquidity pools to sustainably increase the value of DKDEFI, IQYIELD and NOIR tokens.
This is a proposal for the BrainDAO to take full ownership of AIQ and integrate AIQ at a core level with the ATP platform by making it possible for graduated Agents to easily upgrade their IQ-Agent token liquidity to AIQ-Agent token liquidity while having the app.iqai.com interface switch to trading out of the new AIQ pool.
Proposal Benefits
By making it easy for Agents to upgrade to AIQ liquidity, the Agent Tokenization Platform will give Agents the capability to convert their idle IQ liquidity into high revenue generating assets.
This revenue can then be used to empower Agents, increase Agent token values, provide returns to holders, and fund Agent developments.
How it works
AIQ tokens generate a yield through the following processes.
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Whenever 1 AIQ = > 1.001 IQ, the AIQ protocol mints new AIQ and sells it, until the price of AIQ = 1.0001.
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IQ gained from the sale of AIQ is deployed by the AIQ Treasury.
Approximately 40-65% is deployed to hiIQ staking with a 4 year renewing lock, and remainder is deployed into incentivized IQ liquidity pools on curve.
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80% of the yield generated by the AIQ Treasury is converted to AIQ and distributed through Merkl to AIQ holders and liquidity providers. Remaining 20% is compounded.
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Whenever the price of AIQ = < 0.97 - 0.9 IQ, the AIQ Treasury converts IQ liquidity to AIQ which is then burned. The threshold to trigger AIQ buybacks is set according to the amount of liquid IQ held in the Treasury reserve compared to the amount of circulating AIQ.
Here’s how it would work with BrainDAO integrating AIQ.
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AIQ contract ownership, mint capabilities and AIQ Treasury held tokens will be transferred to the BrainDAO.
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Astral Protocol can continue supporting neccesary AIQ protocol operations by creating multisig transactions that are executed by the BrainDAO, or the BrainDAO can take over handing AIQ transactions entirely.
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The ATP front end will be upgraded to be able to direct trades through IQ and AIQ liquidity pools. Ideally the front end will be capable of executing Odos style trades through both IQ and AIQ Fraxswap V2 pools. Alternatively each front end page can toggle which pool to trade out of.
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Ideally, BrainDAO will develop one click automation for graduated agents to upgrade to AIQ liquidity via a passed proposal. In this case the agent would automatically withdraw from held fraxswap V2 IQ-agent token liquidity, swap IQ to AIQ and then deposit AIQ into a new fraxswap v2 pool with the Agent’s tokens. The BAMM liquidity will remain as is.
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Then the BrainDAO will develop mechanisms for ATP users to use Agent Governance Proposals to deploy each Agent’s AIQ revenue to
A. Execute Agent token purchases with optional Agent token burning
B. Deepen Agent AIQ token liquidity
C. Pay for Agent developments
D. Fund DeFi strategies deployed by Agent Treasuries.