# 💡FAQ ### Is Deliq based on Avalanche ? Deliq will be based on Avalanche blockchain because it is a fast , scalable , decentralized and low gas fee EVM compatible blockchain . Being EVM compatible makes various Ethereum based DeFi protocols to easily launch on Avalanche as well . ### What is Deliq Finance ? Deliq is a decentralized market making protocol which replaces the traditional capital inefficient ways of bootstrapping liquidity with it's game changing Liquidity-by-Staking model . ### What problems does Deliq solve ? Deliq aims to create a liquidity layer that enables easy liquidity bootstrapping for new gen DeFi protocols and facilitates single sided deposits for liquidity providers. ### How is LBS model better than liquidity mining ? Liquidity mining is a costly and capital inefficient way of attracting liquidity which increases the selling pressure on protocol tokens and thus hinders it's price discovery. On the other hand LBS model allows protocol to either swap their token with DLQ , these tokens then become a part of protocol reserve of assets which are further used to provide liquidity to asset pairs . Also unlike LM where liquidity is temporary , Deliq provides sustainable long term liquidity. ### What is Ideal Stage ? In ideal stage Deliq will be able to provide liquidity and reward the LPs and LDs without DLQ token . This is possible only when we accrue enough PCA for every asset in the pool . PCA is accrued via DAO swaps , fees generation. ### How does Deliq's Liquidity Mining differ from traditional Liquidity Mining ? Deliq will start it's journey using a LM program which will be temporary , also as Deliq has it's own Impermanent loss mitigation mechanism for LPs , our temporary LM program will be on a much smaller scale compared to traditional LMs as they have to reward the LPs with much higher amount of rewards as they suffer from IL. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://deliqfinance.gitbook.io/deliq-finance/faq.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.