Liquity is a borrowing protocol built on blockchain technology. It lets users draw interest-free loans backed by collateral they lock in ETH. The loans are issued in LUSD, a stablecoin designed to maintain a peg to the U.S. dollar. The project focuses on making stablecoin borrowing easy to use while aiming for better capital efficiency than other options. It also seeks to reduce reliance on centralized fiat-collateralized stablecoins-like USDC-which currently account for most stablecoin liquidity. In that way, the team aims to support the growing demand for stable-value assets as Ethereum applications expand, using a decentralized and efficient approach.

Liquity uses two tokens within its ecosystem: LUSD and LQTY. LUSD is provided to borrowers and settled as part of the loan mechanism. LQTY is the second token. Its total supply is 100,000,000. LQTY plays a role in the platform’s fee revenue framework and is also used to reward early adopters and frontends.

What are Liquity’s key features and how does it work?

When LUSD is borrowed and later redeemed, fees are collected as one-time charges. The borrower fee is determined as a percentage of the total LUSD amount taken as a loan. The redeemer fee depends on the amount of ETH used when redeeming LUSD back into ETH.

On Liquity, traders may use a lower collateral ratio than on other borrowing protocols, enabling speculation on potential future ETH prices and increasing their exposure to price movement.

What is noteworthy about Liquity?

Some of Liquity’s main benefits include:

Where can you buy LQTY?

LQTY can be traded on the CEXs and DEXs listed here. Some of the most widely used venues with the highest liquidity include Uniswap V3, MEXC Global, and CoinBase Pro. The LQTY price will change based on the selected exchange and broader market conditions. For the latest and historical LQTY market pricing, check the price charts shown on this page.