Frontend Operators

Why should I become a Frontend Operator?

Frontend Operators provide a web interface to the end-user enabling them to interact with the Liquity protocol. For that service, they will be rewarded with a share of the LQTY tokens their users generate.

LQTY rewards are being awarded to Stability Pool depositors and then proportionally shared between the users themselves and the Frontend Operator. How much each party gets is determined by the Kickback Rate which is set by the Frontend Operator and can range between 0% and 100%.

Setting a high Kickback Rate will make the Frontend Operator attractive to users, but offering a nice interface and additional functionalities might allow for a lower kickback rate while still garnering user interest.

Check the Liquity Runs on Decentralized Frontends video for more details.

How can I run a frontend?

You can either install our front end launch kit or integrate our protocol in your environment using our API.

*Details coming soon

What type of rewards do I receive as a frontend?

Frontend rewards are paid out in LQTY. Learn more about LQTY here.

How is a frontend’s reward share calculated?

Rewards are calculated based on the total deposits tagged by the frontend. In a LQTY reward event generating LQTY_d for a deposit d made through a frontend with kickback ratek, the frontend receives(1-k)*LQTY_d and the user receivesk * LQTY_d.

How are frontend rewards paid out?

Each Stability Pool deposit is tagged by the Ethereum address of the front end through which the deposit was made. This address is where the frontend’s LQTY rewards accrue.

What is the kickback rate?

In order to ensure that the Liquity protocol is decentralized from day 1, the Liquity team will not host or run a frontend to interact with the Liquity contracts. As such, it is incumbent upon Liquity community members to act as Frontend Operators and run interfaces for users.

In order to incentivize this behavior, each Frontend Operator may set a rate between 0 and 100% that determines the fraction of LQTY that will be paid out as a kickback to the Stability Providers using the frontend. If a frontend set the kickback rate to 60%, their users would get the remaining 40% of the frontend's reward.

Why doesn’t the Liquity team run a frontend?

Not running our own frontend increases censorship resistance and decentralization, but also helps us bootstrap a distributed ecosystem.