Liquity is a decentralized protocol that enables Ether holders to access maximum liquidity against their collateral without paying interest. By locking up ETH as collateral in a smart contract and creating a "trove", users can instantly mint LUSD, a USD-pegged stablecoin, to obtain liquidity. Each trove must maintain a minimum collateralization of 110%. Holders of LUSD have the option to redeem their stablecoins for the underlying collateral at any time. The redemption process, combined with algorithmically adjusted fees, ensures a minimum stablecoin value of USD 1. Liquity's unique liquidation mechanism utilizes incentivized stability deposits and a redistribution cycle to maintain stability at a lower collateral ratio compared to traditional systems. The protocol relies on economically-driven user interactions and arbitrage, rather than active governance or monetary interventions, to preserve stability. Additionally, the protocol incentivizes early adoption and the operation of multiple front ends to enhance decentralization.

Liquity USD (LUSD) is a stablecoin pegged to the USD and used for loan repayments on the Liquity protocol. It can be redeemed against the underlying collateral at face value. To borrow, users must open a Trove and deposit Ethereum (ETH) as collateral. They can then draw LUSD up to a collateral ratio of 110%.

The Liquity protocol is a decentralized platform offering interest-free loans secured by Ether collateral. The protocol utilizes a Stability Pool with LUSD, and borrowers act as guarantors for any remaining debt. The current total value locked (TVL) on the protocol is over $642 million.

Liquity was founded by Robert Lauko, who serves as the Head of Research. He has a background in traditional finance and expertise in algorithms, network monitoring, and scalability issues.

Rick Pardoe is the co-founder and Lead Engineer at Liquity. He holds degrees in Physics and Economics.

Michael Svoboda is the current CEO at Liquity. He previously held CEO and COO positions at various blockchain companies and holds a degree in Computer Science and Economics.

Liquity is a 'non-custodial, immutable, and governance-free' protocol designed to provide a decentralized and capital-efficient way to borrow stablecoins. Users can access interest-free loans with lower collateral requirements compared to other borrowing systems.

Instead of liquidating their Ether for cash, users can lock up their Ether as collateral and borrow against it to withdraw LUSD. The loan can be repaid at a later date.

Users can also use LUSD as collateral when borrowing Ether, allowing them to sell it on the open market to purchase more Ether, creating a cyclical process that can be repeated.

Additionally, users can earn LQTY by depositing LUSD in the stability pool, participating in the Liquity Protocol's frontend, and providing liquidity to the LUSD:ETH Uniswap pool.

Liquity protocol offers interest-free borrowing. To maintain stability, the protocol implements one-time borrowing and withdrawal fees that adjust automatically based on withdrawal frequency. Higher withdrawal frequency leads to increased borrowing fees, discouraging excessive borrowing.

Unlike other systems such as MakerDAO, Liquity avoids variable interest rates and instead utilizes a decentralized and direct feedback mechanism through one-off fees. This approach ensures borrowers are aware of upfront cost changes and eliminates the need for complex governance procedures.

The current circulating supply of LUSD is 92,482,286.

LUSD is an ERC-20 token issued on the Ethereum blockchain, secured through the Proof-of-Stake (PoS) consensus mechanism. Validators stake 32 ETH to participate in consensus and validate transactions.

LUSD can be purchased on centralized exchanges such as Binance, Coinbase, BYDFi, Gemini, Gate.io, and OKX. It is also available for trading on decentralized exchanges like Uniswap (V3) and Balancer (V2).

You can track LUSD live prices in real-time using the CMC mobile app.