LMaaS launch marks the beginning of AllianceBlock’s journey to redefine DeFi

6 min readMay 24, 2021

Learn more about the AllianceBlock DeFi Terminal on defiterm.io.

The meteoric rise of Decentralized Finance (DeFi) has opened up many new opportunities for people to benefit from a wave of novel financial services. However, the space is still very young and has a long way to go to unlock its full potential. A good example of this is liquidity mining.

Liquidity mining, otherwise known as ‘yield farming’, is undoubtedly one of DeFi’s flagship applications and the one that attracts the most interest from users. But while it’s been off to a great start, there are still plenty of problems that need to be resolved.

Having operated our own liquidity mining program since November, we are well aware of the struggles projects are facing today with respect to liquidity mining. Our solution was to build a proprietary liquidity mining product that was intended to serve our internal goals. The product helped us to achieve a significant increase in key metrics like liquidity, total value locked (TVL), and users. Recent data shows that we have $25 million of TVL in staking and liquidity mining (with a peak at $50M).

These impressive results encouraged us to be more ambitious in our approach and to start thinking about how we could help the DeFi industry as a whole. This is how the idea of AllianceBlock’s DeFi Terminal and Liquidity Mining as a Service (LMaaS) came to be.

Problems with liquidity mining today

The main problem with liquidity mining today stems from the lack of effective industry tools that can facilitate a project’s entry to market. Our initial approach was hardly unique and indeed, projects building their own liquidity mining programs is a common practice in the space. The result is that new projects seeking to build their own liquidity mining programs are faced with a steep entry barrier in terms of investment and development resources, while users are left with a highly fragmented experience that requires them to balance multiple positions across different projects. This introduces potential security issues and limits the accessibility of the space as a whole.

The opportunity

Having faced these problems ourselves, we quickly realized that the current DeFi landscape requires robust tools that enable projects to hit the ground running and users to easily manage existing positions and open new ones. The solution is a white-label Liquidity Mining platform for the DeFi space that addresses these issues and allows DeFi projects getting up their own Liquidity Mining & Staking in no time with the lowest cost possible.

Introducing LMaaS — the foundation of AllianceBlock’s DeFi Terminal

The DeFi Terminal is AllianceBlock’s answer to some of the key challenges our industry is facing and with the release of LMaaS we’re taking the first step towards realizing our vision.

Our LMaaS solution provides new projects with the means to create their own customized liquidity mining platforms. Using AllianceBlock’s LMaaS, projects can deploy pools, launch liquidity mining and staking campaigns and have access to powerful analytics tools that will allow them to track key performance indicators. One of LMaaS’ main objectives is to help projects new to the market improve the liquidity of their tokens.

Meanwhile, users will have access to a one-stop-shop platform from where they will be able to participate in various liquidity mining and staking campaigns, as well as track and manage their assets.

Wealth management is a big part of our vision for the DeFi Terminal, so we’re making sure that users have the means to optimize their asset portfolios and manage asset and reward allocation from day one. As a next step we’ll be adding powerful quantitative and risk management tools that will provide access to advanced analytics and will help users assess their risk from leveraged positions across different DeFi protocols. We are also working on integrating AllianceBlock’s Trustless KYC and Identity Verification products, which will allow projects to be in line with local regulations without having to force users to share their personal data.

Currently, our LMaaS offering supports two blockchains, Ethereum and Binance Smart Chain. We will be adding Polkadot, Avalanche and other protocols in the future.

The AllianceBlock Token (ALBT)

At AllianceBlock, one of our goals is to build a vibrant ecosystem and community that engages with DeFi through powerful and user friendly products and with our token, ALBT. Intended to serve as the lifeblood of the AllianceBlock ecosystem, ALBT is an ERC-20 token created in accordance with the best practices for implementing the token standard. The launch of LMaaS will significantly increase the utility of the token, by creating more ALBT trading pairs, increasing trading volume and total value locked (TVL).

Before projects can start using the LMaaS platform, each project will need to create a liquidity pool with both their own native token and ALBT. The LP tokens they will obtain from that pool will be locked inside an escrow contract. Only then, the features of the LMaaS platform will be unlocked.

Tried and tested

One of the things that makes us excited about the future of the LMaaS offering is the fact that we already know it works. We are our first customer and we’ve been using the product for our own staking and liquidity mining program on both Ethereum and Binance Smart Chain. With $25+ million of TVL (with a peak at $50M), more than 25% of $ALBT circulating supply locked, eight successfully deployed pools and three supported DEX platforms, we can confidently say that our offering is tried and tested. Importantly, the product has undergone multiple audits by three leading firms, which have all confirmed that it’s secure to use. This also means that projects using LMaaS and the rest of the terminal’s features to build their own platforms will not need to conduct further audits.

Strategic partnerships

AllianceBlock’s liquidity mining as a service has already garnered interest and backing from industry peers and the AllianceBlock Liquidity Mining Partnership Program has been supported by partners such as Frontier and Ocean Protocol. Since the start of the year, we’ve also been able to secure additional partnerships with some prominent players in the blockchain and DeFi space.

Recently, we announced a strategic partnership between AllianceBlock and DAO Maker. Under this agreement, the AllianceBlock LMaaS will be integrated into the DAO Maker ecosystem. This will allow the DAO Maker community to benefit from AllianceBlock’s robust Single-sided Liquidity Provisioning (SSLP) solution.

Moreover AllianceBlock LMaaS will also be integrated in the ecosystem of the Faculty Group, an industry-leading incubator. Clients of the Faculty Group will have first look access to AllianceBlock’s LMaaS as well.

We’re equally excited to also be partnering with YOP, UNIDO and Plasma.Finance. Announced recently, these partnerships are set to expand the use of our LMaaS product.

In addition, we’ve been having a productive collaboration with blockchain developer LimeChain, which has been our technology partner since September, 2020. LimeChain has significant experience in working with some of the leading blockchain and DLT protocols like Ethereum, PolkaDot, Hedera and EOS and is now working with AllianceBlock to redefine DeFi.

The future of finance

At AllianceBlock, we believe that DeFi services are poised to play a significant role for the future of finance. But in order to realize its potential, DeFi needs to present compelling arguments that can attract not only crypto aficionados, but also traditional investors that prefer the convenience and familiarity of established financial markets and institutions. Having a product capable of helping projects build their own platforms, while showcasing to users the advantages of DeFi in one complete, convenient and easily accessible package, will go a long way toward elevating the sector and bridging DeFi with traditional finance.

About AllianceBlock

AllianceBlock is building the first globally compliant decentralized capital market. The AllianceBlock Protocol is a decentralized, blockchain-agnostic layer 2 that automates the process of converting any digital or crypto asset into a bankable product.

Incubated by three of Europe’s most prestigious incubators: Station F, L39, and Kickstart Innovation in Zurich, and led by a heavily experienced team of ex-JP Morgan, Barclays, BNP Paribas, Goldman Sachs investment bankers, and quants, AllianceBlock is on the path to disrupt the $100 trillion securities market with its state-of-the-art and globally compliant decentralized capital market.