Ether holders can draw zero interest loans in the form of LQTY, a USD-pegged stablecoin.
Borrowers only need to maintain a collateral ratio of 110%, thanks to a highly efficient instant liquidation mechanism.
LQTY can be redeemed at face value for the underlying ETH collateral.
Price stability does not rely on human governance, but is achieved through protocol incentives and algorithmically adjusted redemption and loan issuance fees (0% by default).
Liquity is a protocol that is controlled by nobody. Front end operation is provided by third parties which benefit from a unique decentralized incentive structure.
Early adopters that drive growth while contributing to the stability of the system get attractive financial rewards.