Liquity Protocol — a decentralized borrowing protocol that allows you to receive interest-free loans for Ether. Loans are repaid in LUSD and must maintain a minimum collateral ratio of 110%. In addition to collateral, loans are secured by the stability pool and other borrowers, acting as guarantors of last resort.
Contents:
Description of the Liquity Protocol
Liquidity on the Liquity Protocol project is provided without interest in LUSD. Unlike other decentralized stablecoins, LUSD is fully redeemable at face value for the underlying collateral. Like existing stablecoin systems, Liquity allows users to mint tokens in a self-service mode. However, other systems have sophisticated governance mechanisms that are required to maintain the peg to the US dollar by updating fees or interest rates.
Some features:
| 1 | Liquity replaces the need for interest and human intervention with algorithmically adjusted repayment and disbursement fees to support its currency. |
| 2 | Both fees are initially set at 0% and increase with redeemed amounts, but tend to return to zero during periods of low redemption activity. |
| 3 | The borrower first blocks ETH in the smart contract and creates an individual liquidity position, called a "treasure chest". |
Each find must have a minimum collateral ratio (110%). The borrower can mint LUSD tokens, which are calculated as collateralized debt. For Eth, worth $ 100, the borrower can receive up to 90.09 LUSD.
Liquity — a protocol, not a platform, and no one controls it. Thus, it outsources the work of the external interfaces to third parties who want to run the web interface for the protocol.
What else should you know?
There is no WhitePaper and RoadMap document on the site. Instead, a blog is available on the Medium platform. Articles about the project are available there.
From social networks, the community leads:
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