- The platform is decentralized to the nth degree.
- Borrowing money comes with a 0% interest rate.
- In compared to other platforms, the collateralization ratio is only 110 percent, which is fairly low.
- Because the platform has no oversight, there is little possibility of manipulation.
- Liquity.org is unaffected by censorship.
- In terms of data and finance, the platform maintains a high level of protection.
- Poor customer support, the customer service helpdesk does not respond quickly and is only accessible via email.
- Interest-free Borrowing
- 3rd party frontends
- Censorship Resistant
- 110% Collateral Ratio
- Efficient liquidations
- Redeemable Stablecoin
- Governace Free
- Incentives for stability providers
- Incentive for stakers
What is Liquity?
Founded in 2019 by Rick Pardoe and Robert Lauko, Liquity.org is a platform that runs a decentralized asset borrowing mechanism. Liquity.org users use a proprietary protocol to acquire 0% interest crypto-asset loans from the platform in exchange for the deposit of an Ether token as collateral. The platform has set a minimum collateral ratio of 110 percent. The loan is offered by Liquity.org in the form of LUSD, a stablecoin whose current value is pegged to that of the US dollar, which is $1.
Users who deposit LUSD into the Liquity.org Stability Pool receive LQTY incentives pro rata. By marking deposits supported by their interface and setting the proportion of LQTY to "kickback" to their users, Frontend Operators can collect a share of these rewards. The money provided by a frontend grows in direct proportion to the total amount of LUSD put in the Stability Pool by its users.
The loans at Liquity.org are secured by collateral assets, other borrowers who collectively serve as guarantors, and, most crucially, the Liquity.org Stability Pool. Because of its decentralization, the Liquity.org reviews reveal that the platform's protocol is immutable, non-custodial, and governance-free.
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