Liquity is a decentralized, Ethereum-based borrowing platform that allows users to take out interest-free loans using Ethereum (ETH) as collateral. Borrowers receive loans in the form of LUSD, a stablecoin pegged to the US dollar. LQTY is the native utility and governance token of the protocol, used for rewards and decision-making.

Liquity was founded by Robert Lauko, who aimed to create a decentralized and efficient borrowing solution with no interest rates. The protocol’s design focuses on capital efficiency, decentralization, and stability.

• Interest-free loans: Borrowers can obtain loans without paying interest by depositing ETH as collateral.

• Stablecoin (LUSD): Loans are issued in LUSD, which is pegged to the US dollar.

• Governance: LQTY token holders can participate in protocol governance and decision-making.

• Rewards: LQTY tokens are distributed as rewards to liquidity providers and stability pool contributors.

Liquity has established itself as a unique player in the DeFi space, offering a capital-efficient and interest-free borrowing solution. Ranked among the top 400 cryptos by market cap, LQTY has gained traction for its innovative approach. Analysts predict strong growth as DeFi adoption expands.

The current price of LQTY, as of 30 January 2025, is ₹133. You can buy LQTY from crypto exchanges like CoinSwitch.

• Borrowing: Use ETH as collateral to borrow LUSD without paying interest.

• Staking: Stake LQTY tokens to earn a share of transaction fees and rewards.

• Governance: Participate in protocol governance and voting using LQTY tokens.

• Liquidity provision: Provide liquidity to stability pools and earn LQTY rewards.

• Offers interest-free loans, enhancing capital efficiency for borrowers.

• Fully decentralized and governed by its community.

• Rewards users through staking and liquidity provision.

• Relies on Ethereum’s price stability, which can be volatile.

• Adoption depends on the growth of DeFi.

• Faces competition from other decentralized borrowing platforms like MakerDAO.

Liquity (LQTY) is a decentralized borrowing protocol that allows users to obtain loans against Ether collateral without interest rates. The LQTY token serves as the protocol’s secondary token, used for fee reduction and governance purposes. The tokenomics of LQTY include allocations for community incentives, team reserves, and ecosystem development, though specific distribution percentages are not detailed in the available sources.