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Decentralized Lending Protocol Liquity Is Launched on the Ethereum Mainnet

Decentralized borrowing protocol Liquity is now officially live on the Ethereum mainnet. The moment comes just a week following the announcement that the startup raised $6 million in a Series A round that was led by investment firm Pantera Capital; other participants were Nima Capital and Alameda Research.

Founded over a year ago, in January of 2020, the Ethereum-based lending protocol lets users draw loans against ETH by using a minimum collateralization ratio of 110%, which is lower than the 150% ratio that MakerDAO asks for. Furthermore, it also doesn’t charge a recurring “stability fee,” unlike Maker.

Loans are available in LUSD, which is a USD-pegged stablecoin. Users have the possibility of depositing LUSD to a “stability pool” so that they can earn rewards in ETH or LQTY, the latter being the token of the protocol.  All the operations of the protocol are algorithmic and fully automated, thus minimizing the need for governance.

“We believe Liquity will unlock a whole suite of new capabilities for DeFi users, and is pushing the space forward with their unique ‘governance-light’ protocol approach,” declared Olaf Carlson-Wee, Polychain co-founder and CEO.

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