Quick Info
Liquity is a decentralized borrowing protocol that allows you to draw 0% interest loans against Ether used as collateral.
- Categories
Key Metrics
- Price
- $1.9526
- Volume (24h)
- $753,878(+42.92%)
- Market Cap
- $195,261,271
- Fully Diluted Market Cap
- $195,261,284
- Circulating Supply
- 99,999,993 LQTY
- Total Supply
- 100,000,000 LQTY
- Trading Start
- 4 years ago
Safety Check
LQTY Token Unlocks
Total Progress
Key Vesting Info
- Unlock Start
- Unlock End
- Total Vesting
Token Allocation
Allocation Groups
Vesting Schedule
Unlock Events
Holders
Holders Trend
Community
X Followers
About LQTY
Liquidity is essential for the DeFi ecosystem, and lending is a crucial component that contributes a significant amount of liquidity. Liquity, a decentralized borrowing protocol built on Ethereum, provides interest-free loans against ETH collateral in the form of a USD-pegged stablecoin called LUSD.
The protocol's native token, LQTY, serves as a utility token to incentivize users and is not a governance token. This article will provide an in-depth understanding of Liquity, its tokenomics, and investment potential.
What is Liquity?
Liquity is a decentralized borrowing protocol built on Ethereum that allows users to borrow LUSD against ETH collateral without having to sell their ETH. The loan is interest-free and requires a minimum collateral ratio of 110%. Liquity operates through the use of Troves, Collateral Debt Positions (CDPs), and a Stability Pool that maintains the protocol's stability.
How does Liquity work?
Liquity uses ETH as collateral to generate LUSD loans, which are repaid with interest in the future. Users can interact with their loans through Troves, which have two balances: ETH as collateral and LUSD as debt. Users can add more collateral or repay debt to change the balances. The Stability Pool helps maintain the protocol's stability by repaying the debt of liquidated Troves. A Trove is liquidated when the collateral is below 110%, and all the collateral is transferred to the Stability Pool.
LQTY Token
Liquity issues two tokens: LQTY, a utility token, and LUSD, a USD-pegged stablecoin. LQTY tokens are used to incentivize users and are not governance tokens. LUSD is used to pay out loans, and the Stability Pool secures them.
LQTY Tokenomics
LQTY tokens were minted at the genesis for gradual distribution. Stability Providers who provide LUSD tokens to the Stability Pool receive early adopter rewards in LQTY tokens. Frontend Operators, who run a web interface built by Liquity's frontend SDK, can earn LQTY rewards and share a portion of their kickbacks with Stability Providers. Coin98 Markets is a website where users can track the real-time price of LQTY.
FAQs
How is Liquity different from other lending protocols?
Unlike traditional lending protocols, Liquity doesn't charge any interest on loans. Additionally, the protocol's unique stability mechanism ensures that the system remains stable, even during market crashes.
What is the interest rate for borrowing on Liquity?
Liquity does not charge any interest on loans. Instead, users earn interest by depositing their collateral into the Stability Pool.
What is the minimum and maximum loan size on Liquity?
The minimum loan size on Liquity is 100 LUSD, and there is no maximum loan size. However, the borrowing capacity of the system is limited by the amount of ETH deposited as collateral.
What is the price of LQTY today?
One LQTY coin can currently be purchased for approximately $1.9526.
What is LQTY smart contract address?
LQTY official smart contract address is 0x6DEA81C8171D0bA574754EF6F8b412F2Ed88c54D.
What is LQTY official website?
The official website of LQTY is www.liquity.org.
What is the LQTY Market Cap today?
LQTY Market Cap is $195,261,271 today.
What's the last 24h LQTY trading volume?
Trading volume of LQTY in the last 24h was $753,878, which is approximately 0.40% of its current market cap. That means LQTY has had relatively low trading activity in the past day.
How much money is in LQTY Liquidity Pool?
There is $3,175,919 in - LQTY liquidity pools. That's approximately 1.63% of LQTY current Market Cap.
