Protocol Owned Liquidity via Redemption Pools

Discover how weighted liquidity pools can help projects efficiently gain access to Protocol Owned Liquidity (POL).
A protocol may want to acquire POL from an audience that is bullish and interested in being more involved in the protocol (amongst other reasons) in exchange for a discounted governance token. The protocol can create a Redemption Pool on Fjord, which not only enables the above distribution but also empowers the protocol’s participants to collectively establish the discount of the governance token relative to the liquidity they’re supplying to the protocol.
This method of distributing a governance token allows the project to gradually release their token while gaining more control over their liquidity. Additionally, with the longer time horizon for token distribution, as opposed to distributing over a condensed time period, allows for a project to decrease point in time risk and provides more flexibility to manage the distribution rate of the governance token.
Redemption Pools can also be conducted in sequence based on the needs of the project and do not need to be a singular event. Sequentially launching Redemption Pools allows for teams to calibrate as needed, the weights and other variables of the pool to support the continued release of their token as well as ensure the discount rate falls within the desired target.