What is Liquity?
The Liquity token or LQTY is the secondary token native to Liquity - a decentralized borrowing protocol. Users can stake their LQTY and earn a share of LUSD and ETH. This is done by depositing Liquity tokens into the staking contract.
Liquity protocol is powered by another native token called LUSD which is a decentralized USD-pegged stablecoin that users can borrow against ETH.
There is a max cap of 100,000,000 Liquity tokens. They have been allocated as follows:
- 33.9% - Investors;
- 33.3% - Community;
- 23.7% - Team and Advisors;
- 6.1% - Endowment;
- 2% - Community Reserve;
- 1% - Service Providers.
One of the main ways LQTY can be obtained is by sending LUSD tokens into the Stability Pool.
There is a drastic difference between the all-time high and all-time low of the LQTY price. It means that the Liquity price tends to be high in volatility.
You can have a more in-depth look at the LQTY token details such as the current Liquity price on the graph above.
What are the Main Features of Liquity?
Liquity enables users to borrow crypto in an interest-free manner. The borrowed amount comes in the form of LUSD.
As discussed in the What is Liquity section, users can make a passive income by staking LQTY. This is possible because all fees are paid out to stakers.
Liquity protocol is completely governance-free. This means that there is no central or decentralized authority making all the important decisions.
Who Developed Liquity?
The Liquity crypto project was launched on April 5th of 2021. It’s a Switzerland-based company founded by Robert Lauko who is also the Head of Research at Liquity.
Liquidity is partnered up with Polychain Capital, Pantera, Robot Ventures, AngelDAO, Beacon, Lemniscap, and many more.
