Liquity operates as a blockchain-based borrowing protocol. Users can take out interest-free loans against collateral posted in ETH. Loans are distributed in the LUSD stablecoin that is pegged to the U.S. dollar. It aims to provide a user-friendly method of borrowing stablecoins that is also more capital efficient than other alternatives. It also hopes to address the issue of centralized fiat-collateralized stablecoins, such as USDC, making up the majority of stablecoin liquidity. As such, the team hopes to cater to the growing need for stable-value assets when building Ethereum applications in a decentralized and efficient way.

Liquity has two tokens associated with its platform: LUSD and LQTY. LUSD is distributed to borrowers and paid out as a loan. LQTY is the second token. It has a total supply of 100,000,000. It is used as part of the platform’s fee revenue process and also for providing incentives for early adopters and frontends in the form of rewards.

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

Fees are charged as one-offs when LUSD is borrowed and redeemed. The borrower fee is calculated as a percentage of the total LUSD amount loaned. The redeemer fee is calculated based on the amount of ETH paid when redeeming LUSD for ETH.

Traders can leverage the smaller collateral ratio on Liquity compared with other borrowing protocols and speculate on future ETH prices, thus increasing their exposure to price changes.

What is noteworthy about Liquity?

Some of Liquity’s main benefits include:

Where can you buy LQTY?

LQTY is available for trading on the following CEXs and DEXs listed here. The most popular platforms with the highest liquidity are Uniswap V3, MEXC Global, and CoinBase Pro. The price of LQTY will vary depending on the choice of exchange and overall market conditions. For up-to-date and historic data for LQTY market price, please view the price charts on this page.