Difference between revisions of "Liquity"
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Revision as of 15:44, 21 April 2022
Liquity is a smart contract lending service enabling users to take out over-collateralized loans by locking ETH as collateral to borrow LUSD, a stablecoin pegged to the U.S. dollar. Once generated, LUSD can serve diverse usage: a hedge against volatility, a tool to get leverage on ETH, or even access yields through DeFi applications.
Launched in April 2021, the platform grew to a total value locked of $1.15 billion as of April 2022.[1]
The service provided by Liquity is similar to MakerDAO, but the protocol has several specificities, the main one being that Liquity and LUSD are fully unstoppable: the services are enabled thanks to smart contracts that have no administrative functions. It means that just like Uniswap, the Liquity protocol cannot be modified in any way and will operate as long as the Ethereum network synchronises.