What is Liquity?

Founded in 2019 by Rick Pardoe and Robert Lauko, Liquity.org is a platform that runs a decentralized asset borrowing mechanism. Liquity.org users use a proprietary protocol to acquire 0% interest crypto-asset loans from the platform in exchange for the deposit of an Ether token as collateral. The platform has set a minimum collateral ratio of 110 percent. The loan is offered by Liquity.org in the form of LUSD, a stablecoin whose current value is pegged to that of the US dollar, which is $1.

Users who deposit LUSD into the Liquity.org Stability Pool receive LQTY incentives pro rata. By marking deposits supported by their interface and setting the proportion of LQTY to "kickback" to their users, Frontend Operators can collect a share of these rewards. The money provided by a frontend grows in direct proportion to the total amount of LUSD put in the Stability Pool by its users.

The loans at Liquity.org are secured by collateral assets, other borrowers who collectively serve as guarantors, and, most crucially, the Liquity.org Stability Pool. Because of its decentralization, the Liquity.org reviews reveal that the platform's protocol is immutable, non-custodial, and governance-free.