Empowering Wealth in the Web3 Era
LiquidETH Co. lends money to earn yield in the form of fees in the 3rd epoch of the World Wide Web called Web3. We operate as a sovereign-wealth fund within the emerging economies of the Ethereum Framework, capitalizing its infrastructure to produce real-world value in national and international economies.
Fidelity Investments describes blockchain technology, such as the Ethereum Virtual Machine (EVM), as similar to traditional economies, where activity can be viewed through a GDP-like lens of investments, consumption, government spending, and net exports. LiquidETH Co. embodies this framework, leveraging Ethereum's native currency, Ether, to drive financial innovation.
The EVM powers a complex financial and economic system infrastructure. It is primarily designed to provide a computing runtime environment that executes smart contracts—self-executing programs that enforce agreements or rules without intermediaries. Every operation in the EVM consumes a fee paid in Ether, ensuring computational security and efficiency.
The EVM enables a global decentralized “cloud” of Ethereum nodes, all executing the same code to ensure consistent outcomes across the network. The fee, analogous to “gas” burned to operate and maintain the EVM, supports its operations. LiquidETH Co. finances these operations by staking capital from our treasury to grow, fertilize, and harvest “farmers” who produce valuable outcomes in the global economy.
An Ethereum bank is when a person or company holds Ether (ETH), the native cryptocurrency of the Ethereum network, as part of its financial reserves. Instead of relying solely on traditional assets like fiat currencies, bonds, or stocks, these entities allocate a portion of their balance sheet to ETH, embracing digital assets and Ethereum’s unique capabilities.
How it works: Companies buy ETH on the open market or through institutional-grade platforms and manage these holdings like any other treasury asset. Some hold ETH as a long-term store of value (HODL), while others, like LiquidETH Co., deploy ETH into Ethereum’s DeFi ecosystem to earn yield through lending protocols.
In simple terms, an Ethereum bank combines computational and financial strategies to put ETH to work in a smart infrastructure.
Liquidity refers to how easily an asset can be exchanged in a market without significantly affecting its price. In decentralized finance (DeFi), providing liquidity involves contributing assets to a liquidity pool on a decentralized exchange (DEX) like Uniswap, facilitating token swaps without traditional order books.
Impermanent loss occurs when a liquidity provider (LP) in a DEX experiences a temporary reduction in the value of their deposited assets due to price fluctuations in a liquidity pool. For example, when providing ETH and USDC to a pool, the automated market maker (AMM) rebalances token quantities through trades, potentially leaving the LP with more of the lower-value token. This loss is “impermanent” because it’s only realized upon withdrawal, and it diminishes if prices revert. However, IL can outweigh trading fee earnings in volatile markets.
LiquidETH Co. provides expertise and services to individuals and companies seeking an Ethereum treasury asset investment, helping navigate the complexities of DeFi and liquidity provision.