Liquity
Since
2020
About
Empowering your DeFi journey with zero-interest ETH credit and rewarding stablecoin transactions
Liquity is a decentralized borrowing protocol enabling users to draw interest-free credit by collateralizing ETH. It issues LUSD, a USD-pegged stablecoin, requiring only a 110% minimum collateral ratio. Fully governance-free and immutable, the protocol generates revenue through fees, distributing 100% of earnings to $LQTY stakers, ensuring a maximally decentralized and sustainable financial ecosystem.
Use Cases
Interest-Free Borrowing Against ETH
Users can collateralize ETH to borrow BOLD stablecoin without paying interest,enabling cost-effective liquidity access.
Stablecoin Yield Farming
Deposit BOLD in Stability Pools to earn rewards, providing passive incomeopportunities in a decentralized setup.
Multi-Collateral Risk Management
Use various ETH derivatives as collateral to diversify risk and optimizeborrowing capacity with adjustable interest rates.
ETH Exposure Multiplication via Looping
Users can increase ETH holdings by recursively borrowing BOLD and purchasingmore ETH, maximizing potential returns.
Key Features
Liquity V1 Key Aspects
- Liquity V1 allows users to draw 0% interest loans against Ether used ascollateral.
- Liquity V1 issues loans in LUSD, a USD-pegged stablecoin that is fully redeemable for the underlying collateral.
- Liquity V1 maintains a minimum collateralization ratio of 110% for Troves(liquidity positions).
- Liquity V1 uses a Stability Pool to instantly absorb Troves with insufficientcollateral, liquidating debt by burning LUSD tokens.
- Liquity V1 is a protocol rather than a platform, outsourcing front-endoperations to third parties and incentivizing them with LQTY tokens.
Liquity V2 Features
- Liquity V2 allows users to deposit ETH or LSTs as collateral and mint thestablecoin BOLD.
- Liquity V2 enables user-set interest rates, giving borrowers control over their borrowing costs.
- Liquity V2 supports staked ETH from Lido (wstETH) and Rocket Pool (rETH) ascollateral.
- Liquity V2 features a new redemption mechanism that is not tied to LTV and isless frequent than in V1.
- In Liquity V2, staking LQTY unlocks dual-reward opportunities, influencing theprotocol's future and earning LUSD and ETH rewards from Liquity V1.
(Founder)
Robert Lauko
(Co-Founder)
Rick Pardoe
Headquarters
🇨🇠Zug
Website
liquity.org
$24B
Total Value Locked (TVL)
91%
Maximum Loan-to-Value (LTV) ratio
