The State of Forkonomics

With V2, Liquity introduces a new bootstrapping primitive - Forkonomics.

Leveraging the popularity of V1's codebase, V2 introduced the concept of "friendly forks."

These forks develop their protocols using the V2 codebase and, in return, offer incentives to Liquity users.

So far, several have been announced:

- @asymmetryfin on @AmpleforthOrg

- @beraborrow on @berachain

- @felixprotocol on @HyperliquidX

- @NeriteOrg on @arbitrum

- @Virtue_Money on @iota

- @QuillFi on @Scroll_ZKP

In 2025, a significant expansion is on the horizon, with over 15 forks set to launch across every major EVM chain, as well as several high-profile deployments on mainnet.

Benefits for Liquity Community

- Exclusive yield opportunities: $BOLD users access unique yield opportunities within each friendly fork ecosystem.

- Directing revenue streams: $LQTY stakers direct stablecoin incentives, enabling the creation of vote incentive markets.

- Increased trust: As the V2 model becomes more prevalent across DeFi, user confidence and adoption are expected to grow.

Benefits for Forking Teams

- Accelerated market entry: Faster protocol launch and alligned user base.

- Reduced development costs: Utilizing the V2 codebase lowers initial expenses.

- Joint liquidity: Easier user acquisition and liquidity onboarding.

This approach will create an interconnected and robust DeFi ecosystem, built on cooperation and mutual growth.