A Beginner’s Guide to Ethereum Scaling SolutionsRead on the DeFi Pulse Blog

Key Stats

Total Value Locked24H
in USD$2.13B-3.3%
in ETH703.3K ETH+0.8%
in BTC49.4K BTC+0.9%
ETH Locked427.85K ETH+777 ETH
% Supply Locked0.36%
Most Locked$ETH
Protocol Token$LQTY

Total Value Locked (USD) in Liquity

  • TVL (USD)
  • ETH
  • All
  • 1 Year
  • 90 Day
  • 30 Day
defipulse chart

What is Liquity?

Liquity is an interest-free, collateralized borrowing protocol and stablecoin with novel batched and instant liquidations. It is governance-free, completely immutable, and has a minimum collateral ratio of 110%. Users lock ETH as collateral and issue the LUSD stablecoin against it, only paying a one-time borrowing fee. Their collateralized debt position is known as a “Trove”. Any LUSD holder is free to deposit to the Stability Pool, where their LUSD will be used to soak up debt from liquidated troves. In return, LUSD depositors receive a share of the liquidated ETH collateral, and can expect a net gain as the value of liquidated collateral is nearly always greater than the debt. The LUSD token is fully redeemable, and 1 LUSD may always be redeemed for $1 worth of ETH with the system at any time, subject to a redemption fee. LQTY is the Liquity system token. It is issued continuously as a reward to Stability Pool depositors, and can be staked in order to earn a share of the borrowing and redemption fees.

How to use Liquity?

Users may access the Liquity protocol through any third-party front end. Liquity.org hosts a list of active front end operators. Front ends compete on UX, trust, and their chosen “kickback rate” which determines the fraction of LQTY rewards their depositors earn. A user opens a Trove by depositing ETH collateral, and withdraws LUSD - they may then deposit their LUSD to earn LQTY and ETH over time, and stake their LQTY to earn a share of system fees.

Oasis.app: Growing Crypto’s Tried-and-True Dai and DeFi Gateway

Maker, Ethereum’s first-ever DeFi application, is a decentralized credit platform offering users access to the most proven permissionless stablecoin to…

2021-09-20Read more >

Founder Fireside Chat with Kryptocucumber of Ruler Protocol

The Founder Fireside Chat series hosted by DeFi Pulse interviews DeFi founders in the hopes of offering readers an opportunity…

2021-08-26Read more >

Founder Fireside Chat with Lao Zi of QiDao Protocol

This week we’re joined by Lao Zi, anonymous founder of QiDao Protocol, who shares their advice for building community around…

2021-07-08Read more >

AMA with Aave Founder Stani Kulechov

This blog post was produced from a transcript of our live AMA with Aave Protocol Founder and CEO Stani Kulechov….

2021-06-25Read more >