Get up to $200 for getting started
Coinbase Logo
Sign in
Liquity logo

Liquity

LQTY

4.3

Price
$0.73
9/29/2022, 11:21:51 AM
diamondHands

Trade Liquity today

Create a Coinbase account to buy and sell Liquity on the most secure crypto exchange.

Market

Market stats

Market cap

$59.4M

Volume (24h)

$869,918.65

Circulating supply

82.0M LQTY

Typical hold time

5 days

Popularity

#128

All time high

$62.97

Price change (1h)

0%

Price change (24h)

-1.89%

Price change (7d)

-4%

Trading activity

73% Buy0% Buy
27% Sell100% Sell

Sign up now to get up to $400 in rewards

Coinbase users can earn up to $400 on average just by taking advantage of our rewards. Get started now.

congratulationsOnEarningCrypto

Liquity is on the decline this week.

The price of Liquity has fallen by 4.00% in the past 7 days. The price declined by 1.89% in the last 24 hours. The current price is $0.725 per LQTY. Liquity is 98.85% below the all time high of $62.97.

The current circulating supply is 81,991,388.039 LQTY.

About

LQTY is an Ethereum token that powers the Liquity protocol, a decentralized borrowing platform for 0% interest loans using ETH as collateral. Loans are paid out in a stablecoin called LUSD, and LQTY holders can stake their token to earn a portion of fees generated by opening and closing loans.

What Is Liquity (LQTY)?

Liquity (LQTY) is a decentralized borrowing protocol that allows users to draw loans with any interest against Ether token used as collateral. In simple words, the platform provides loans to individuals in exchange for Ether tokens present with them. On the platform, loans are paid out using LUSD tokens. LUSD is the USD-pegged stablecoin that can be redeemed at any time against the underlying collateral at face value. This means that the users can easily convert the LUSD tokens into traditional currency at any given time. 

Further, LUSD needs to maintain a minimum collateral ratio of 110%. Users can lock up Ether on the Liquity platform, then issue LUSD to their own Ethereum address, and subsequently transfer those tokens to any other Ethereum address as well. Next, a Trove is where the user can take out and maintain their loan. Each Trove is linked to an Ethereum address, and each address can have just one Trove. To put simply, Trove is an account that keeps the record of ETH as well as the debt given in the form of LUSD. 

Primarily, Liquity uses the LUSD tokens in the Stability Pool to absorb the undercollateralized debt, i.e., to repay the liquidated borrower's liability. The Stability Pool maintains the system's solvency as the first line of defense. The platform achieves solvency by acting as the liquidity source to repay debt from liquidated Troves and ensuring that the total LUSD supply remains backed up. Further, the Stability Pool is funded by users (stability providers) transferring LUSD. Over time, while gaining a pro-rata share of the liquidated collateral, stability providers lose a pro-rata share of their LUSD deposits as well.

According to the Liquity Docs, collateralized debt platforms do not rely on lenders to provide liquidity and generate free liquidity with no refinancing costs. Yet, most platforms charge recurring fees for borrowing. The variable fees (stability fees) correspond to an interest rate in traditional banking, have an indirect impact on monetary supply, and are rather ineffective in the short term. Short-term speculators and leverage seekers might not be greatly affected by interest rates, but existing borrowers may not have the means to repay their loans as an immediate reaction to rising interest.

In addition to charging stability fees, existing platforms require the individual borrower’s position to be overcollateralized. This is due to the liquidation mechanisms they apply to a borrower that become undercollateralized. Overcollaterization makes the borrower’s capital inefficient. Furthermore, both collateral auctions and fixed-price selloffs have turned out to be inefficient by design, leaving room for improvement.

Finally, crypto-backed stablecoins are not redeemable at face value, and due to the lack of direct arbitrage cycles, they cannot guarantee a hard price peg as well. Thus these coins are usually subject to higher price volatility than traditional currency-backed stablecoins. Instead, the systems rely on a soft peg mechanism that is less effective, stabilizing the exchange rate by making the loans more or less attractive through variable fees.

Liquity improves upon the above-mentioned issues by offering the following key benefits:

  • Interest-free liquidity

  • Low collateral ratio (110%)

  • Hard price floor

  • Governance-free algorithmic monetary policy

  • Censorship resistance

  • Growth incentives

Notably, LQTY is the secondary token issued by Liquity and incentivizes early adopters and frontends. Frontend Operator provides a web interface to the end user. This further enables them to interact with the Liquity protocol. LQTY rewards will only accrue to Stability Providers, users depositing LUSD to the Stability Pool, frontends facilitating those deposits, and liquidity providers of the LUSD:ETH Uniswap pool. 

History of Liquity (LQTY)

Robert Lauko and Rick Pardoe are the founders of Liquity. Lauko is the CEO and was previously a researcher at DFINITY. Pardoe is the lead engineer and is a Solidity. Michael Svoboda is the COO and was previously CEO and COO at several blockchain companies.

The whitepaper and the LQTY token of the platform were launched on April 5, 2021.

How Are New Liquity (LQTY) Tokens Staked?

LQTY holders can stake their tokens on the platform to earn the fees generated by LUSD redemptions and loan issuance. The process of redemption involves exchanging LUSD for ETH at face value. Anytime, users can redeem their LUSD for ETH without limitations. However, there may be a redemption fee on the redeemed amount. 

To start staking, the user needs to deposit the LQTY token to the Liquity staking contract. Once done, the user will start earning a pro-rata share of the borrowing and redemption fees in LUSD and ETH. The LQTY stake will earn a fee share equal to the share of the total LQTY staked at the instant the fee occurred. Only LQTY tokens can be staked on the platform, and LUSD can be deposited into the Stability Pool instead.

How Many Liquity (LQTY) Tokens Are There?

Liquity (LQTY) has a maximum supply of 100,000,000 LQTY tokens. 

How to Buy Liquity (LQTY) Tokens

LQTY tokens can be purchased and traded at an exchange like Coinbase. It's safe, secure, and easy.

Related Assets

Trending assets

Assets with the biggest change in unique page views on coinbase.com over the past 24 hours.

Popular cryptocurrencies

A selection of cryptocurrencies in the top 50 by market cap.

Recently added

A selection of the most recently added cryptocurrencies.

Comparable market cap

Of all the assets on Coinbase, these 8 are the closest to Liquity in market cap.

Social

Liquity on social media.

Liquity was mentioned in 27 out of 1,883,558 social media posts on Twitter and Reddit on Sep 27, 2022. 19 unique individuals are talking about Liquity and it is ranked #858 in most mentions and activity from collected posts.

Powered by LunarCrush

Key indicators

Contributors

19 people

Posts

27 posts

Dominance

0%

Volume rank

#858

Powered by LunarCrush

FAQ

What is the current price of Liquity?

The price of 1 Liquity currently costs $0.73.

What is the market cap of Liquity?

The current market cap of Liquity is $59.44M. A high market cap implies that the asset is highly valued by the market.

What is the all time high of Liquity?

The all-time high of Liquity is $62.97. This all-time high is highest price paid for Liquity since it was launched.

What is the 24 hour trading volume of Liquity?

Over the last 24 hours, the trading volume of Liquity is $869.92K.

What other assets are similar to Liquity?

Assets that have a similar market cap to Liquity include Alchemy Pay, RSK Smart Bitcoin, MAGIC, and many others. To see a full list, see our comparable market cap assets.

How many Liquity are there?

The current circulating supply of Liquity is 82 million.

What is the typical holding time of Liquity?

The median time that Coinbase customers hold Liquity before selling it or sending it to another account or address is 5 days.

What is the relative popularity of Liquity?

Liquity ranks 171 among tradable assets on Coinbase. Popularity is currently based on relative market cap.

What is the current trading activity of Liquity?

Currently, 73% of Coinbase users are buying Liquity. In other words, 73% of Coinbase customers have increased their net position in Liquity over the past 24 hours through trading.

Coinbase Bytes

The week’s biggest crypto news, sent right to your inbox

Coinbase Bytes article