DeFi has consistently shown that successful protocols require deep, stable liquidity as their foundation. As Tren Finance prepares for our mainnet launch on Arbitrum, establishing this foundation through our Liquidity Generation Event (LGE) becomes a crucial first step. Starting December 17th, the LGE will create the liquidity backbone that will enable our protocol's future capabilities.
The traditional approach to liquidity bootstrapping often involves complex requirements and unclear reward structures. We're taking a different path - one that prioritizes simplicity, transparency, and capital efficiency. Through our Single Sided Liquidity (SSL) contract, we're introducing a mechanism that not only simplifies participation but also maximizes the effectiveness of every dollar contributed.
Single Sided Liquidity: Reimagining Capital Efficiency
At the heart of our LGE lies the Single Sided Liquidity (SSL) program, a mechanism that fundamentally changes how users participate in liquidity provision. While traditional approaches require users to provide equal amounts of two tokens, our SSL program allows participants to deposit only USDT, significantly reducing complexity and capital requirements.
When a user deposits USDT into the SSL contract, a series of operations occurs behind the scenes. The protocol mints an equivalent amount of XY tokens, which are then paired with the deposited USDT to create a liquidity position. This 1:1 minting ratio ensures perfect parity between XY and USDT at launch, while automated position management through Gamma maintains stability during market operations.
For example, when a user deposits 1,000 USDT:
The SSL contract secures their USDT deposit
An equivalent 1,000 XY tokens are minted
A managed liquidity position worth $2,000 is created
TREN rewards begin accruing immediately
This process effectively doubles the user's liquidity exposure while maintaining the simplicity of a single token deposit.
Real Rewards, Real Value
Unlike many recent DeFi launches that rely on point systems with unclear conversion rates, our LGE offers complete transparency in rewards. From the moment of deposit, participants earn actual TREN tokens - not points or promises. These rewards are calculated and updated every second using our modified MasterChef contract implementation.
Our emission schedule is precisely defined:
Monthly base emissions: 2.5 million TREN tokens (0.25%)
Monthly bonus emissions: 500,000 TREN tokens (0.05%)
Total monthly distribution: 3 million TREN tokens
Program duration: 18 months
Total allocation: 5.40% of TREN's total supply
Understanding Your Returns
Based on our tokenomics model and projected TVL scenarios, participants can expect varying levels of returns. Using a Fully Diluted Valuation of $40M USD, we project the following annual percentage yields:
These projections account for both base rewards and compound returns from trading fees. The inverse relationship between TVL and APY ensures early participants benefit from higher initial returns while maintaining sustainable rates as the protocol grows.
Deposits
The SSL program streamlines the entire liquidity provision process. Users can deposit USDT with no minimum requirement and no maximum cap, ensuring accessible participation while maintaining capital efficiency. While there are no lock-up periods, we've implemented a 14-day withdrawal notice period for stability reasons. This feature protects all participants by ensuring orderly position management and preventing potential market manipulation.
Withdrawals
Once a user initiates a withdrawal:
TREN rewards stop accruing immediately
The 14-day withdrawal period begins
Position remains in the liquidity pool during this period
Users may receive more stablecoins than initially deposited due to accumulated fees
Prior to initiating withdrawal, rewards in TREN are earned continuously, calculated and distributed every second based on deposit size and duration. While users can track their accruing rewards in real-time, the claim function will be activated after the Token Generation Event (TGE). Once implemented, users can claim their earned TREN tokens at their convenience.
Professional Position Management
Through integration with Gamma's infrastructure, every liquidity position benefits from institutional-grade management. Our system continuously monitors market conditions and adjusts positions to optimize for both fee generation and impermanent loss mitigation. This sophisticated management happens automatically, requiring no active intervention from participants.
The management system considers multiple factors:
Market volatility patterns
Trading volume distribution
Fee accumulation rates
Gas efficiency for position adjustments
Security and Risk Management
Security forms the cornerstone of our LGE infrastructure. Our contracts have undergone rigorous auditing by leading blockchain security firms:
The core SSL contracts have been independently audited by Zokyo, while our integration with Gamma's infrastructure benefits from multiple security audits by:
The Path Forward
The LGE serves a focused purpose: establishing deep and stable liquidity for XY ahead of our mainnet launch on Arbitrum. This foundation of liquidity is essential for the protocol's core functionality.
Starting December 17th, participants can provide liquidity through our platform's capital-efficient mechanism. When using Tren Finance's frontend, users benefit from our unique minting system where a $500 USDT deposit results in a $1,000 liquidity position through automated XY minting. This approach effectively doubles your liquidity exposure without requiring additional capital - maximizing returns while maintaining the simplicity of a single token deposit.
The future of DeFi demands robust, efficient infrastructure. The LGE lays the groundwork for Tren Finance's vision of unlocking billions in idle assets through our (re)collateralization protocol. Whether you're an experienced liquidity provider or new to DeFi, we invite you to join us in this crucial phase of Tren Finance's evolution on Arbitrum.
About Tren Finance
Tren Finance is the first Liquidity (re)Enabling Protocol that brings capital efficiency to DeFi through composability. We allow users to (re)collateralize their LP tokens, money market deposits, and (re)staked positions, unlocking billions in idle liquidity across the ecosystem. Built by a team of DeFi veterans with experience from leading protocols like MakerDAO, Ajna, Binance and Venom, Tren is paving the way for a more efficient and interconnected DeFi ecosystem.
