Liquity Profile picture
Mar 4 β€’ 5 tweets β€’ 2 min read
Liquity basics in 4 short tweets πŸ‘‡

1️⃣ Values of Liquity
2️⃣ Liquity Protocol
3️⃣ LUSD stablecoin
4️⃣ LQTY token

A quick refresher for the new community members that joined recently.

πŸ‘‰ Learn more about #Liquity in 4 tweets in <1min. A🧡
1/ Liquity embodies the true ethos of crypto from day one:

βœ… Decentralized (Liquity is credibly neutral)
βœ… Immutable (no multi-sig, no upgrades)
βœ… Governance-minimized (no DAO & governance drama)

Why is it important? This means less risk for you.
2/ Liquity

πŸ‘‰ Borrow with 0% interest against your $ETH.

πŸ‘‰ One of the cheapest ways to get a loan or leverage up your $ETH.

πŸ‘‰ Liquity issued 4b+ in loans and generated more than $30m in revenue since its inception.

πŸ“½ See an explainer video:
3/ LUSD

πŸ‘‰ Liquity also issues the most decentralized and resilient #stablecoin on Ethereum.

πŸ‘‰ Use $LUSD as a treasury asset, DCA into $ETH at favorable terms or use it to generate yield: dune.com/murathan/liqui…
4/ LQTY

πŸ‘‰ $LQTY is the protocol's secondary token that captures the generated revenue. $LQTY stakers get rewarded 100% of that!

πŸ‘‰ Earn hard assets: $LUSD from the borrowing and $ETH from the redemption fees.

πŸ‘‰ Read LQTY 101 from the User Docs: docs.liquity.org/faq/lqty-distr…

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More from @LiquityProtocol

Feb 1
Stakers of LQTY can earn fees from two fronts:

Loan issuance (in LUSD)
Redemptions (in ETH)

But how can you earn & use LQTY in DeFi?

A 🧡 on:

- Earning LQTY
- DeFi with LQTY
- Liquifrens

Let's dive inπŸ‘‡ Image
1/ Earning LQTY

LQTY can be earned by users through 2️⃣ ways:

- Depositing LUSD into the Stability Pool
- Frontend operators that earn a 'kickback rate' from stability pool deposits βœ…

Anon, can you remind me what the stability pool is? πŸ€”
2/ The Stability Pool is the liquidation mechanism of Liquity

Liquidation gains (in ETH) & rewards (in LQTY) are distributed to users who deposit LUSD in the Stability Pool as a compensation for upholding the liquidation mechanism of the protocol

But how do frontends earn LQTY?
Read 9 tweets
Jan 31
February = number go up? πŸ€”

Not sure about the markets, but it certainly applies at LiquiFrens!

A 🧡 on:
- LiquiFrens ⭐
- Getting involved for Feb (hint: there is more budget availableπŸ’°)

Anons, the clock starts now 🫑

PS - The two January proposals have reached quorum πŸ”₯ Image
Before jumping into things, a brief reminder of what LiquiFrens is:

It is a grants program that will provide funding for user-made proposals

$LQTY holders vote on which proposals get funded, thus making it a community driven initiative

So, what's the budget for February?
The budget for February is $7,500 LUSDπŸ€‘

There is already one proposal up by @kevin_soell, so the πŸ•™ is running!

❗A reminder that proposals need to be finalized within the first two weeks upon which voting ensues

To read + create proposals, check outπŸ‘‡
frens.liquity.org
Read 4 tweets
Jan 30
Why is LQTY's weekly APR currently 44%?

A 🧡 on how the LQTY token works, and how stakers can earn yield in two of the most unstoppable tokens around:

- LUSD πŸ’΅
- ETH πŸ¦‡πŸ”Š

A quick refresher πŸ‘‡ 🧡 Image
Stakers of LQTY can earn fees generated on two fronts:

Loan issuance (paid out in LUSD)
Redemptions (paid out in ETH)

So how come the sudden huge spike in yield for stakers this week?

πŸ‘‡
An independent whale minted $52m LUSD across multiple transactions, resulting in 270k LUSD being generated in loan fees for the protocol (aka LQTY stakers πŸ’Έ )

The πŸ‹ also sold some of their LUSD to ETH, causing some redemptions to take place, which further added ETH rewards πŸ€‘ ImageImage
Read 5 tweets
Dec 6, 2022
The @Balancer governance just approved the addition of $BAL rewards to the "Trinity" pool - $LUSD / $wETH / $LQTY - gauge

πŸ™ Thanks, to the ballers for their support: looking forward to the next steps!

It's an essential part of LUSD's liquidity strategy, a quick threadπŸ‘‡οΈ

1/7
So far, the main liquidity source for $LUSD is @CurveFinance LUSD/3CRV pool, a staple to sustain stablecoins' liquidity

However, with LUSD's premium, the stableswap formula is not as efficient as it could be

Having x*y=k type LUSD liquidity can help improve the situation

2/7
Indeed, x*y=k and its variant maximize liquidity availability, which helps to ensure a baseline $LUSD liquidity is secured, no matter what happens on the markets, even on days where liquidity needs are intense, such as when the $ETH price is depreciating.

3/7
Read 7 tweets
Dec 6, 2022
Decentralized πŸ‘ finance πŸ‘ needs πŸ‘ decentralized πŸ‘ money

$1 LUSD = $1 on Liquity, forever and always ⛓️

With LUSD being above peg at $1.03, what does this mean? πŸ’‘

It becomes all the more interesting for DAOs that have large ETH treasuries 🧡
When LUSD is at $1.00 Liquity's maximum leverage ratio for users longing ETH is 11x (110% min LTV).

At the current price of 1.03, it makes the maximum leverage ratio increase to 15.72x - meaning that you can leverage up an extra 4.72x at no extra liquidation risk!
The higher the $LUSD price is, the more attractive it becomes for Trove owners who are long ETH to scale up their position 🧠

Along with leveraging up on their ETH, users can:

1) Pocket the premium & sell their $LUSD
2) Take their $LUSD and enter the game of @ChickenBonds !
Read 4 tweets
Nov 18, 2022
πŸ“£ The shenanigans of CeFi may cause some weariness, but the builders in DeFi Land keep chugging along πŸš†

A quick 🧡 on all the exciting new possibilities in DeFi involving Liquity & our DeFi frens over the past few weeks that you don't want to miss πŸ”₯ πŸ‘‡ Image
1/ @StargateFinance now supports LUSD transfers between selected chains (@optimismFND and Ethereum). They also have STG rewards up for grabs for LPs πŸ‘€

2)/ @GearboxProtocol

Gearbox Protocol's v2 allows for the LUSD 3CRV LP to be used as collateral, and introduces a new form of borrowing for leverage hungry degens 🫑

Read 6 tweets

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