230 Interactions, 2 today
From $0 to $1B TVL in 10 days 📈
Here’s some charts highlighting Liquity’s growth so far: pic.twitter.com/qpSzRp0gZs
— Liquity (@LiquityProtocol) April 15, 2021
Liquity, backed by Pantera Capital, is a Swiss-based decentralised and governance-free lending protocol that provides interest-free loans against Ethereum locked as collateral, with users needing to retain a minimum collateral ratio of 110 percent.
Loans are made in the protocol’s algorithmic secure coin LUSD, which is pegged to the value of USD one-to-one. The protocol creates LUSD automatically to satisfy consumer demand, and has so far minted a supply of 480 million secure coins, with more coins minted than burned each day.
The loans are secured by the protocol’s Stability Pool, which serves as a means of collateral to recover liquidated debt, as well as by fellow creditors serving as guarantors of last resort jointly. Users can gain money by staking liquidity and earning revenue from issuance fees in LUSD and redemption fees in ETH through the protocol.
Data from the massive 10-day run published by DuneAnalytics revealed that borrowing demand has so far rewarded stakers, with an average of roughly $240,000 in fees generated per day on the protocol between April 12 and April 14. On April 15, the gross staked value surpassed $720,000, and the majority of consumers are maintaining a collateral range of 150-250 percent.
On March 29, it was announced that the Liquity Protocol had completed its Series A funding round, led by Pantera Capital, with a $6 million stake, as well as investments from companies such as quantitative investment company Alameda Research.
The decentralised finance protocol market continues to break records, with data aggregator DeFi Llama reporting that there is now $123.33 billion in gross locked-up value in DeFi protocols as of today. In its brief existence, the Liquity Protocol has risen to 26th position in the top 100 DeFi protocols, with $1.06 billion in TVL.