What is Liquity?
Liquity is a DeFi protocol for borrowing. It is built on the Ethereum blockchain and uses a dollar-pegged stablecoin LQTY. Providing Eth, users can automatically get LQTY loans with corresponding fees. Liquity's deployment on Ether took place on April 5. Liquity isn't controlled by governance, it has a fixed mechanism, and a starting collateral rate of 110%. The network has two tokens: LUSD via which users get loans and the unit for rewards LQTY. It is issued regularly as a reward to Stability Pool (SP) contributors and can be staked to get a fraction of the borrowing and short-term trading fees. LQTY has a max supply of 100,000,000 tokens. There are three ways to receive LQTY tokens: 1. Depositing LUSD into the SP. 2. Facilitating SP deposits through your front end. 3. Providing liquidity to the LUSD LQTY holders can stake their tokens to earn the fees formed by loan distribution and LUSD repayments. That is the process of exchanging LUSD for ETH at nominal value as if 1 LUSD is exactly worth $1.