About Liquity (LQTY)
Liquity is an Ethereum-based decentralized borrowing protocol. The platform intends to allow users to pull interest-free loans against ETH as underlying collateral. These loans are paid in the platform's USD-pegged stablecoin, LUSD.
To access the platform's loans, users must first have a Trove (an Ethereum address-linked vault) with a minimum deposit of ETH before accessing the Liquity network. Liquity markets itself as a decentralized lending system providing users with a 110% collateral rate and allowing users to obtain loans at 0% interest rates while collateralizing ETH.
Liquity uses the $LQTY token as a reward incentive for early adopters and Frontend Operators to use the platform. The live price of LQTY is available and tracked on Binance.
Users can earn LQTY in three different ways. Users can earn LQTY by depositing in the protocol's Stability Pool, ensuring that the total LUSD supply is always backed by acting as a source of liquidity to repay debt from liquidated troves.
Users can also earn LQTY by providing liquidity to the LUSD/ETH pool. Developers building with Liquity can earn LQTY by facilitating Stability Pool deposits in a project's front end.
In terms of governance, Liquity eschews the traditional governance framework in favor of human voting on protocol development. In Liquity, all parameters ordinarily subject to a vote are either algorithmically controlled by the protocol or predefined.
Taking such a hands-off approach to governance is alleged to provide users with a predictable experience when borrowing against their ETH.