About Liquity

Liquity functions as a blockchain-based borrowing protocol, allowing users to obtain interest-free loans secured by ETH collateral. Loans are issued in LUSD, a stablecoin pegged to the US dollar. The platform aims to offer a user-friendly and capital-efficient alternative for borrowing stablecoins, addressing issues related to centralized fiat-collateralized stablecoins like USDC, which dominate stablecoin liquidity. Liquity's ecosystem includes two tokens: LUSD, which is distributed to borrowers as a loan, and LQTY, with a total supply of 100 million, used for platform fee revenue and incentives for early adopters and frontends. Key features include one-time fees for borrowing and redemption, with fee rates based on loan size and ETH paid during redemption. Traders can leverage the lower ...