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Why to choose lqty.io

3rd party frontend

Lqty.io is an independent frontend that is not connected with liquity.org who does not run its own web interface.

Frontend HTTPS Secured

The front-end is secured with HTTPS encryption which offers you the maximum security for transactions.

Earn LQTY Rewards

Earn 99% of the front-end rewards by depositing LUSD in the Stability Pool. We keep only 1% as a management fee.

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What is the long-term vision of Liquity?

Liquity's long-term vision is to enable anyone to invest in high yield assets — regardless of income. The explanation comes from Robert Lauko, the Founder & CEO of Liquity

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Liquity features

Liquity is a decentralized borrowing protocol offering interest-free liquidity against collateral in Ether. By utilizing a novel liquidation mechanism and leveraging an algorithmic monetary policy, it can offer unprecedented benefits for borrower.

Incentives for Stakers

The system captures the revenue from the borrowing and redemption fees and pays it out on a pro rata basis to the stakers of the LQTY token. The tokens can be staked and unstaked any time with no minimum lockup period.

Censorship resistant

Liquity is a protocol rather than a platform. There is no administrator with special privileges that could interfere with, alter, or halt the operation of the protocol in any way.

110% collateral ratio

Liquity protocol allows for an unprecedented minimum collateral ratio of 110%, which corresponds to a loan-to-value ratio of 90.09%. This makes borrowing highly capital efficient and allows for up to 11x leverage on investments.

Interest-free borrowing

Users can draw the stablecoin LUSD interest-free against their Ether used as collateral. They can thus obtain liquidity for free without any recurring costs.

Efficient liquidations

Quick and efficient liquidations of Troves that fall under the minimum collateral ratio of 110% ensure the health and stability of the system.

Incentives for Stability Providers

Holders can deposit LUSD tokens to the Stability Pool and make the system more robust against Ether price drops.

Redeemable Stablecoin

LUSD is a fully redeemable stablecoin. At any time, the system allows holders to redeem their LUSD for the underlying Ether collateral at face value. For example: A holder redeeming 100 LUSD would receive $100 worth of Ether collateral from the riskiest Trove(s), minus the current redemption fee.

Governance free

Unlike other platforms, Liquity protocol does not rely on human governance to vote on monetary interventions. All protocol parameters are either preset and immutable or algorithmically controlled by the protocol itself — making human interventions redundant.

Read more about features

Learn about Liquity from FAQ!

Liquity is a decentralized borrowing protocol that allows you to draw 0% interest loans against Ether used as collateral. Loans are paid out in LUSD - a USD pegged stablecoin, and need to maintain a minimum collateral ratio of only 110%.

In addition to the collateral, the loans are secured by a Stability Pool containing LUSD and by fellow borrowers collectively acting as guarantors of last resort. Learn more about these mechanisms under Liquidations.

Liquity as a protocol is non-custodial, immutable and governance-free.

You first need to choose a web interface (from our frontend) to access the system. The core team building the protocol will not operate a frontend. Liquity is instead accessed by third-party frontend applications and integration services.

Liquity offers the best borrowing conditions on the market with the main benefits being:

  • 0% interest rate
  • A collateral ratio of just 110%
  • Governance free - all operations are algorithmic and fully automated
  • Directly redeemable - LUSD can be redeemed at face value for the underlying collateral, always and at any time
  • Censorship resistant - the protocol is controlled by nobody

There are basically two different ways to generate revenue using Liquity:

1. Deposit LUSD to the Stability Pool and earn liquidation gains and LQTY rewards

2. Stake LQTY and earn the revenue from issuance fees (in LUSD) and redemption fees (in ETH)