Liquity $LQTY

Liquity is an innovative crypto project that has introduced the LQTY token. This token captures the fee revenue generated by the Liquity Protocol through staking. The protocol stands out due to its unique borrowing system which enables drawing 0% interest loans against Ether used as collateral. These loans are issued in LUSD and must maintain a minimum collateral ratio of 110%.

The Liquity Protocol

The Liquity Protocol is a decentralized borrowing protocol that allows users to secure loans without interest. It operates using Ether as collateral, ensuring every loan is backed by substantial value. This revolutionary approach to crypto borrowing makes it more accessible to a wide array of users, as they can acquire loans without worrying about accruing interest.

Stability Pool

Apart from collecting collateral, the Liquity Protocol also secures loans via a Stability Pool. This Pool holds LUSD and provides an additional layer of security for all loans issued through the protocol. Such a dual-pronged approach to loan security offers greater certainty for those lending and borrowing via this system.

Collective Guarantors

The Liquity system also boasts a unique feature where borrowers collectively act as guarantors of last resort. This communal guarantee method strengthens the system's robustness, setting a new standard in crypto lending services.

The LQTY Token

The LQTY token is a critical component of the Liquity Protocol. It captures the fee revenue generated by the protocol and distributes it to stakeholders. This innovative token model offers an attractive incentive for participation in the protocol.

Non-Custodial and Governance-Free

Liquity is designed to be non-custodial and governance-free. This means that the protocol does not exercise control over user's funds, ensuring maximum privacy and freedom. Additionally, being governance-free means there are no voting procedures that could potentially be manipulated, increasing the fairness and reliability of the system.