Buy Liquity (LQTY)

Liquity (LQTY) is a decentralized lending platform. Ethereum (ETH) serves as the collateral. The loans are paid out in a stablecoin pegged to the US dollar: LUSD.

Liquity positions itself as a platform offering highly advantageous financing. A loan can be obtained for 0 percent interest. This does not occur in the traditional financial world.

The Liquity (LQTY) protocol operates on the Ethereum network and uses smart contracts for settling transactions. These smart contracts are part of the blockchain. This robust and secure network minimizes the risk of transaction manipulation.

Liquity will significantly change the traditional lending market. Thanks to blockchain technology and smart contracts, no authorities are involved in a transaction, however, transactions can be viewed by everyone. This system allows transactions to be more efficient than ever and provides greater transparency.

Who founded Liquity?

Robert Lauko and Rick Pardoe are the founders of Liquity. These two individuals have extensive experience in programming and software. Lauko previously worked as a researcher at DFINITY. In 2019, he exchanged this position for the role of CEO of Liquity.

Rick Pardoe focuses less on general matters, but more on Solidity. This is the programming language of Ethereum and plays a significant role within the Liquity platform. In recent years, Lauko and Pardoe have created a decentralized platform that everyone can participate in: Liquity.

Founders Robert Lauko and Rick Pardoe aim to make Liquity a highly accessible lending platform. Financial inclusion is central to this project, meaning everyone can use the protocol. Liquity (LQTY) offers various features, allowing you to:

• Use Ethereum as collateral: To obtain a loan, users must deposit Ethereum (ETH) as collateral. Loans are disbursed in LUSD, a stablecoin pegged to the US dollar, ensuring relative value stability.
• Access loans without stringent requirements: Unlike traditional banks, Liquity does not impose extensive credit requirements or strict financial conditions. Anyone can apply for a loan by simply depositing ETH as collateral.
• Conduct transactions without intermediaries: Transactions are executed via smart contracts on the blockchain, eliminating intermediaries. This results in a more efficient process and lower costs.
• Borrow interest-free: Loans through Liquity are granted without interest. Users only pay a one-time fee of 0.5 percent upon opening a loan.
• Engage with an open and transparent ecosystem: The absence of oversight by authorities ensures a transparent financial system, relying on blockchain technology and smart contracts instead. This makes Liquity a reliable alternative to traditional financing options.

Liquity uses its own protocol that allows users to deposit Ethereum (ETH) as collateral. The borrower receives LUSD, a stablecoin pegged to the value of the US dollar. The dollar's value is relatively stable, reducing the likelihood of volatility. A loan in LUSD can, for example, be used for crypto trading or making purchases.

The Liquity platform uses a type of loan called ‘Trove’. This means users deposit their LUSD into a special fund used to cover debts during liquidations. Sometimes, the value of the ETH in the Trove is too low. At that moment, a liquidation occurs. When this happens, the ETH from the Trove is sold to pay off the loan (LUSD). That way, the system incurs no loss.

The above process takes place in the so-called 'stability pool'. Users don't need to do much. They simply deposit LUSD into the pool and wait patiently. At the moment of liquidation, the ETH is proportionally distributed across all deposits (the so-called stability providers). Additionally, there is a 'burn' of LUSD, proportionally, of course, so that all providers can settle their outstanding debts.

Fewer requirements and volatility

Liquity has several key goals. First, it aims to be an accessible platform for a wide audience. Borrowing in the world of DeFi should be as simple, secure, and affordable as possible. The absence of interest and a complex set of requirements should contribute to this.

Secondly, Liquity aims to reduce volatility in the world of crypto and DeFi. The crypto market is known for being unpredictable and volatile. A crypto token can rise or fall sharply in value. This platform seeks to prevent that by using a stablecoin pegged to the US dollar. As a stablecoin, LUSD has a fixed price of 1 dollar per crypto coin.

Liquity (LQTY) aims to elevate the DeFi space by offering affordable and reliable financing options. It seeks to stand out in the dynamic world of crypto and DeFi in these ways:

• Broad accessibility: Liquity reaches both novice and experienced DeFi users by being accessible and transparent. Utilizing blockchain ensures transactions are always secure and reliable.
• Loans without a central authority: Ethereum (ETH) can be used as collateral for loans without involving banks or financial institutions. This makes finance access much more accessible and efficient.
• Minimal collateral requirements: The minimum collateral ratio is 110 percent. This means users only need to deposit a small amount of collateral to obtain a loan, making Liquity appealing to a wide audience.
• Dual token system: Liquity employs two tokens - the LUSD stablecoin for stability and the LQTY token for transactions.
• Stability pool ensures solvency: Liquity uses a “stability pool” to maintain platform solvency, absorbing debts from liquidated Troves. Losses from liquidation are covered, allowing borrowers to repay loans without endangering the system.
• Market volatility protection: Liquity uses LUSD, a stablecoin pegged to the U.S. dollar. This pegging provides more stability, making it safer to take and repay loans, even amid market volatility.

Bitvavo is a platform for buying Liquity (LQTY). The platform is suitable for both beginners and experienced traders. Want to quickly and easily purchase Liquity tokens via our website or mobile app? Follow these steps:

1. Create an account or log in.
2. Add funds by clicking "Deposit".
3. View the current price of Liquity (LQTY) on the sales page.
4. Enter the desired amount in euros or the number of tokens you wish to purchase and click "Buy".

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