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.
What problem does Liquity solve?
Liquity solves the problem of collateral requirements for borrowing by allowing users to borrow funds against the value of their ETH holdings without requiring additional collateral. This offers a more accessible borrowing option for users who may not have additional collateral to use for borrowing.
Who uses Liquity?
Liquity is used by a range of individuals and entities, including cryptocurrency traders, investors, and individuals who need access to funds without the need for additional collateral.
What can Liquity be used for?
Liquity can be used for a variety of applications, including borrowing funds for trading or investment purposes, accessing capital without requiring additional collateral, and participating in decentralized governance through LiquityDAO.
How to get started with Liquity?
To get started with Liquity, users can visit the Liquity website and connect their Ethereum wallet. They can then use their ETH holdings to borrow funds and participate in LiquityDAO governance. There are also a variety of online resources, including tutorials and documentation, that can help users get started with using Liquity.