Liquorice

Liquorice Labs Inc. provides a decentralized finance (DeFi) protocol that enhances on-chain pricing and capital efficiency for professional trading firms. Founded in 2023 and headquartered in Claymont, Delaware, the company offers single-sided lending pools integrated with an intent-based trading engine. This structure allows Liquidity Providers (LPs) to stake individual assets and earn yields generated from the trading activities of professional firms that borrow the capital.

The platform serves as a unified layer connecting solvers, market makers, and liquidity providers. It offers a single point of access to major DeFi trading platforms, including CoW Swap, Uniswap X, and 1inch Fusion, through a unified API that simplifies interactions with orders and trades. For solvers and market makers, Liquorice provides seamless connectivity and access to off-chain liquidity sources, eliminating the need for manual integrations. The protocol is designed to facilitate request-for-quote (RFQ) trading flows from solvers operating in these intent-based systems.

The business model centers on generating yield for LPs from the profits of professional trading firms that utilize the borrowed funds for strategies like arbitrage between the platform and centralized exchanges. To mitigate risks for LPs, such as bad debt or smart contract vulnerabilities, Liquorice delegates price risk to the professional traders, implements a robust risk management framework, and grants borrowing access only to a select group of vetted trading firms. The company secured $1.2 million in funding to advance its infrastructure.

Keywords: DeFi protocol, intent-based trading, single-sided lending, liquidity pools, professional trading firms, on-chain pricing, capital efficiency, market makers, decentralized finance, RFQ trading, arbitrage strategies, DeFi connectivity, crypto lending, blockchain finance, digital asset management, Uniswap X, CoW Swap, 1inch Fusion, solvers, liquidity provision