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Liquity is described as a decentralized application for borrowing cryptocurrency without paying interest rates on ETH collateral. Liquity’s borrowing platform integrates two tokens, LQTY and LUSD, to provide liquidity for decentralized loans.
What is Liquity (LQTY)?
Robert Lauko, a research fellow at DFINITY responsible for the development of the Internet Computer (IC), launched the protocol in April 2021. In his new role as founder and head of research at Liquity, he raised $8.4 million in three funding rounds, mostly from Pantera Capital and Polychain.
In October 2022, Liquity added another innovation through Chicken Bonds. Leveraging Liquity’s stablecoin, Chicken introduced a yield-enhancing bonding mechanism with a fortified LUSD – bLUSD. This means that LUSD depositors can earn even higher returns in exchange for collateralized debt.
Liquity is touted as being a bit different from other decentralized applications. It is best described as a basic lending protocol because frontend operators are needed to actually use Liquity. In other words, Liquity is more of an infrastructure application that offers the management logic of binary tokenomics.
DeFi developers can then create a website without permission to connect their services to the Liquity Protocol.
At the core of Liquity are “Stabilization Pools”. These are smart contracts that pool liquidity provided by liquidity providers (LPs). On the borrowing side of the equation, borrowers enter Liquity’s collateralized debt position (CDP), called the “Trove”.
Where to Buy LQTY Coin?
LQTY Coin can be safely traded on Binance, the world’s largest cryptocurrency exchange by trading volume. LQTY Coin is traded on the Binance platform in the LQTY/BTC and LQTY/USDT pairs. At the time of writing, LQTY Coin is trading at $2.3.
To buy LQTY, you must first become a member of the Binance exchange. Upon completion of the membership, cryptocurrency or fiat currency must be transferred to the Binance account wallet. After the transfer is complete, you can buy LQTY Coin in all three of the above-mentioned currencies. To buy from the LQTY/USDT trading pair, you must first navigate to the interface of this pair. In the LQTY/USDT interface, enter the amount to be purchased in the field indicated in the limit tab. After specifying the amount, the purchase is executed with the LQTY Buy order.
