Ivan on Tech Academy provides latest insights and reports about the blockchain industry.
Liquity Protocol is a decentralized borrowing protocol that offers interest-free collateralized borrowing and DeFi lending. As one of the top-performing decentralized finance (DeFi) lending platforms of 2021, Liquity has seen a surge in usage. This is thanks to the novel dual-token model that issues both the LUSD stablecoin and the Liquity token (LQTY). Liquity facilitates collateralized loans with a 110% minimum collateral ratio, which is attracting the attention of DeFi users. Many of you may be wondering, “what is Liquity?”, and, “how do LUSD and the LQTY token work?”. If this is the case, then you’ve made it to the right place!
In this article, we’re going to explore the various inventive mechanisms that make up the backbone of Liquity Protocol. Also, we’ll discuss LUSD and the LQTY token, and how this novel dual-token model works on a technical level.
Liquity was created on the second-largest blockchain network, Ethereum. To learn...