Liquity DeFi Protocol Launches on Ethereum Mainnet

On April 5, the developers of the Liquity lending platform launched it on the Ethereum mainnet.

Liquity is now live on Ethereum mainnet! 🚀

Users can start borrowing $LUSD interest-free against their ETH, earn $LQTY rewards, and stake $LQTY to earn protocol fees using any of the available frontends.

Full announcement here: https://t.co/WRxNAf5DPe

— Liquity (@LiquityProtocol) April 5, 2021

Liquity offers interest-free liquidity backed by Ethereum. The protocol uses an algorithmic monetary policy.

Loans are issued in the US dollar-pegged stablecoin LUSD. Borrowers must maintain a minimum collateralization ratio of debt positions of 110%. The corresponding figure for the popular lending platform Maker is 150%.

LUSD can be contributed to a “stability pool.” The algorithm contemplates regular liquidations of LUSD; users will be rewarded with ETH and the LQTY governance token on a pro rata basis.

Holders of LQTY can lock tokens in staking to receive part of the fees charged by the protocol in Ethereum and LUSD.

In late March, Liquity Protocol raised $6 million in a Series A round led by Pantera Capital and others.

As of the first quarter, the value of assets locked in DeFi protocols reached $78.7 billion. The second, third and fifth places in the rankings were taken by lending platforms.

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