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Big Liquidations and Great User Threads

Big Liquidations and Great User Threads

Bojan Pecek

July 4, 2022

Hi everyone! The market might be in a lull, but DeFi builders keep building; welcome back to our monthly wrap-up where we discuss all things Liquity. This month, we wanted to spice things up and go with a short twitter thread that covers a lot of what we’ve done which can be viewed here. Let’s begin!

Community Grants  
Permissionless DeFi needs more awareness & adoption and as a part of that initiative Liquity has decided to kick off a community grants program for contributors who help with the cause! Starting July 1st, there will be 3,000 LQTY up for grabs each month. You can read more about it here.

As a part of this initiative  we also decided to retroactively award 5,000 LQTY tokens to previous contributors, which can be found on the link above.

We would also like to highlight several great threads by our community members this month:
- Auto dollar-cost averaging into ETH by korpi
- Liquity & LUSD stability by crv.mktcap.eth
- High level overview of the Liquity protocol by  Barry Fried1
- Long Term borrowing use cases by DegenSensei
- Flow-chart of how Liquity works by 0xboka.lens
- Stability Pool use cases by 0xd24

It’s very encouraging to see such great content being produced by our community, and we are excited to see more of it in the coming months.

Liquity stood stress test

With the Ether price dropping this month, Liquity saw many liquidations among them the biggest one so far with $61m!
Liquity’s stability pool depositors received 71.5k ETH(!) from this single transaction, and it also meant that the APR for the week of June 13th for Stability Pool providers hit a whopping 751%! A reminder that Stability Pool rewards are paid out in ETH :). 

To learn more about how liquidations and stability pool works, here are some great reads from Crypto Twitter’s korpi & zachlight16  which details how DCA’ing using Liquity works.

For more information on Liquity’s average APR and general health, please check out the Dune dashboard here -

L2 2022

To continue our foray into L2 2022, we are delighted to announce that Celer’s Cbridge now supports bridging of $LUSD between Optimism and Ethereum. There’s no need to wait 7 days to withdraw from Optimism anymore! For more info check here.

The fast bridging capabilities of the Celer bridge now means that LUSD’s use case is growing outside of Ethereum Layer 1. There is now LUSD on Synthetix, a LUSD/USDC pool on Velodrome, and a fast withdrawal option available through Celer’s bridge.

To read more about the different use cases we have on Optimism, check out this great blog post from TokenBrice which highlights each use-case in detail: LUSD’s growing usecase on Optimism

Liquity gets added to Curve Whitelist

Building with synergy across DeFi is something Liquity strives for, and we are delighted our treasury has been whitelisted on Curve.

Through being whitelisted, the veCRV balance will be used to to partake in gauge votes for the LUSD Curve Pool, participate in relevant governance votes for Liquity, and might be used to boost self-owned liquidity in the future. Bring on Curve governance! To read our proposal, check out this post on Curve’s forums by TokenBrice. 

Liquity Media Coverage & Content

Bitcoin Suisse Coverage - Bitcoin Suisse wrote a very insightful article that gives a great high level overview of all things Liquity - from information about the protocol’s beginnings, to the main use cases it provides. Feel free to have a look at on their official site here

CVC 2022 - Robert & Michael participated in the Crypto Valley Conference where the highlight was a talk from Robert that went through the benefits of using Liquity, and Chris from Bitcoin Suisse who discussed how Bitcoin Suisse uses Liquity for their clients

Swiss Road Podcast - Michael spoke to Didier of Swiss Road Podcasts to discuss the origination of Liquity, its decentralization facets, and the use cases the protocol provides

Oracle Summit Berlin - Rick Pardoe, Liquity Lead Engineer, spoke at the Oracle Summit in Berlin where he talked about Liquity’s system design choices and how Liquity uses Chainlink as the primary oracle, and has Tellor as fallback.

Using DefiSaver - Our very own TokenBrice produced an in-depth article which details how you can use Defi Saver for managing your trove.

Token Terminal - Token Terminal conducted a writeup of an interview with Michael which discussed Liquity’s business model, the competitive landscape, and future business plans.

LUSDBull - Fan made crypto twitter accounts seem to pop up every now and again, and it seems like the LUSD Bull has entered the arena to represent Liquity. We look forward to the banter that the different stable-bulls within crypto continue producing