> For the complete documentation index, see [llms.txt](https://docs.skydrome.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.skydrome.finance/features/protocol-overview.md).

# Protocol Overview

Liquidity serves as the lifeblood for the seamless operation of blockchain-based assets. Several strategies have emerged to ensure robust liquidity provisioning:

1. **Yield Farming and Secondary Pool Emissions:** By allocating rewards to staked LPs, these structures motivate participants to supply liquidity, allowing them to accrue additional tokens as compensation.
2. **Protocol-Owned Liquidity:** Some protoocls retain a subset of their tokens in liquidity pools. This proactive approach fortifies the ecosystem, ensuring consistent liquidity and reducing volatility.
3. **Governance Engagement via Token Bribes and Voting:** Tokens endowed with voting privileges can be further incentivized with offers of alternate tokens. This strategy spurs active participation in governance, as holders are incentivized to sway voting outcomes through tangible rewards.

**Introducing Skydrome**

Skydrome is a DeFi protocol designed to assist projects in meeting their liquidity requirements in a compelling manner. 

Drawing inspiration from Velodrome, Skydrome is erected upon the foundational architecture of Solidly. Its aim is to guarantee equitable rewards for liquidity providers, factoring in the challenges of impermanent loss. The prototype Solidly platform encountered multiple obstacles which stymied its widespread adoption within the Fantom landscape. 

Addressing these gaps, Skydrome has introduced a series of enhancements to the Solidly foundation. Each modification was meticulously selected to ensure the protocol's commitment to the core principle: enabling voters to equitably recompense LPs for impermanent losses. 

It's crucial to note the fundamental barriers that curtailed Solidly's momentum within the Fantom ecosystem.


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