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Bi-Weekly Wrap Up #26
March 28, 2022
Welcome to the Bi-Weekly Wrap Up, a bi-weekly series where we go over all of the highlights within the Liquity ecosystem. This issue covers 3/7/22 – 3/27/22.
What is Liquity? Liquity is a decentralized borrowing protocol that allows you to draw 0% interest loans against Ether used as collateral. Learn more.
Over the last three weeks, the ETH price has finally seen an increase from ~$2,500 to ~$3,300. In correlation, the LUSD supply has also seen one of its first positive durations since the start of 2022 with ~23m LUSD being minted and ~17m LUSD being burned over the last 21 days. This is a good sign that borrowers are starting to get comfortable again with the current market.
It’s also important that we highlight the recent change in LUSD utilization. Since January, LUSD has started to flood back into the Stabiltiy Pool — increasing its dominance to 72.5% of the LUSD supply. Recently, OlympusDAO followed this trend and made their long-awaited deposit as well (more details in a later section).
After being in a gradual downtrend since early last year, the total collateral ratio (TCR) has seen a significant increase over the last few weeks. This could be due to a combination of the rising ETH price and borrowers de-risking.
Tidal Finance now provides insurance for Liquity users. More details here.
KeeperDAO has acquired 5m LUSD and deposited into B.Protocol’s AMM. This adds another layer of protection against liquidations. More details here.
A BEAN/LUSD pool is now live on Curve. Once the pool reaches ~2M in liquidity, theBeanstalk community will vote to whitelist the LP tokens in the Silo. Users can add liquidity or trade here.
OlympusDAO has deposited ~23m LUSD into the Stability Pool. View the transaction here.
Liquity’s score on DeFi Safety has increased. More details here.
We’re now hiring for a Head of Growth! If you're interested in making DeFi’s most decentralized stablecoin a household name and bringing our next product ideas to market, apply here.
ICYMI: I published a blog post that highlights how the Stability Pool acts as a liquidity reserve and the available arbitrage opportunity for depositors. Read it here.