Liquity (LQTY)

What is Liquity?

Liquity is a decentralized borrowing protocol that allows you to withdraw 0% interest loans against Ether used as collateral. Loans are paid in LUSD – a stablecoin pegged to USD and need to maintain a minimum collateral ratio of only 110%.

In addition to collateral, loans are secured by the LUSD-containing Stable Compound and by co-borrowers acting as guarantors of the last resort. Learn more about these mechanisms in Liquidation.

Liquity as a protocol is unattended, immutable, and non-administrative.

Features of Liquity

Liquity offers the best loan terms in the market with the main benefits being:

• 0% interest
• Guaranteed asset ratio is only 110%
• Free management
• All operations are algorithmic and fully automatic
• Can be converted directly
• LUSD can be redeemed at face value for the underlying collateral, always and at any time
• Anti-censorship
• The protocol is not controlled by no one

Main features of the platform

Borrow LUSD against ETH by opening Trove
Secure Liquity by providing LUSD to Stability Pool in exchange for staking rewards
LQTY to earn fee revenue to pay for borrowing or exchanging LUSD Exchange 1 LUSD for 1 USD worth of ETH when LUSD closes below 1 USD

Mode of Operation

The Liquity protocol provides interest-free loans and is more capital-efficient than other borrowing systems (i.e. less collateral is required for the same loan). Instead of selling Ether for liquidity, you can use the protocol to lock up your Ether, take out a mortgage to withdraw LUSD, and then repay your loan at a future date.

Roadmap

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