For years, one of the biggest issues with crypto loans has been the high borrowing and issuance fees charged by platforms. Many of these services charge predatory interest rates and are designed to benefit the development team at the expense of users. However, a new system called Liquity has arrived on the scene, and it has the potential to revolutionize the entire crypto-lending market.
- Liquity is a fully automated and governance-free decentralized borrowing protocol with LUSD as its primary network token and LQTY as its secondary network token.
- Users who are interested in borrowing from the protocol will receive their loans in the form of LUSD, which can be redeemed in exchange for ETH.
- Users who provide stability and liquidity to Liquity will receive rewards in the form of LQTY tokens, which can be staked to receive additional rewards.
What Is Liquity?
Liquity is a fully automated and governance-free decentralized borrowing protocol. It’s designed to allow permissionless loaning of its native token using third-party frontends to achieve maximum capital efficiency and user-friendliness.