Liquity Newsletter — June 2021

Hey everyone! Welcome to our monthly newsletter where we share updates regarding Liquity and our ecosystem on a regular cadence.

If you haven’t already, be sure to follow us on Twitter and join the community Discord to stay up to date.

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Protocol Overview

Despite the choppy crypto market, Liquity’s TVL continued to grow at a steady pace through June — adding an additional ~67,000 ETH collateral and >150 new Troves.

In the May newsletter, protocol revenue was at ~$12.3M and has since crossed $12.9M, meaning ~$600k in revenue was distributed to LQTY stakers in June.

Speaking of revenue, Liquity frontends have generated over 55,000 LQTY (>$300,000) in revenue from Stability Providers since launch. In other words, $100,000 per month (at current prices) has been distributed to Frontend Operators via Liquity’s “kickback rate”.

Hiring Update

In June 2021 we hired Derrick as our Community Manager. Derrick has been a community member and moderator since before the Liquity launch helping with support, community efforts, and various types of content.

With Derrick’s help, we’ll be able to increase the amount of community-oriented content we publish and expand our ecosystem efforts. We’re excited to have him on board full-time!

Integration Updates

DeFi Saver added Liquity support. The integration includes a dedicated Liquity dashboard with Boost and Repay options along with Recipe Creator support for building custom sets of interactions (e.g. migrating from Maker, Aave, or Compound to Liquity in one transaction).
Saddle Finance launched a D4 pool including LUSD, FEI, FRAX, and alUSD. This new pool will allow users to trade across all four stablecoins with low fees.
A WETH / LUSD pool is now live on Balancer. The pool balance is 60% WETH and 40% LUSD.
Pickle Finance launched a symbiotic LQTY Jar. The Jar stakes LQTY and compounds the LUSD and ETH rewards in to more LQTY for stakers.
The LQTY/BNT pool was whitelisted on Bancor. This means the pool has impermanent loss protection and allows for single sided liquidity provision.
Element Finance launched with initial support for crvLUSD. Element Finance is a decentralized protocol that allows users to earn fixed rate yield.
B.Protocol teased their upcoming Liquity integration. Essentially, it aims to sell users’ ETH gains in the Stability Pool at the best price possible. Example here.
A proposal to integrate Liquity on Instadapp was published. If passed, the ‘Liquity Connector’ will be added to the master DSA Connector contracts, enabling DeFi Smart Accounts to interact with the Liquity protocol.

Content Updates

Liquity CEO and Founder, Robert Lauko, spoke on the Liquidity Wars: How to Enable Better Capital Efficiency for DeFi panel at the Global DeFi Summit. Watch the recording here.
Robert published a blog post outlining his thoughts around LUSD’s usage, Liquity’s redemption mechanism, and LUSD’s peg. Read it here.
Robert joined Economics Design to discuss how Liquity’s mechanisms work, how to mint LUSD, what the LQTY token is, how stability is maintained, and opinions of the system. Watch it here.
DeFi Slate published a podcast with Robert and I where we discussed Liquity’s growth, the ETH flippening, the future of DeFi, and more. Listen here.
Our Community Manager, Derrick, posted part one of his series comparing key differences between Liquity and MakerDAO. Read it here.
Hack Money 2021 by ETHGlobal took place in June and I hosted an Introduction to Liquity workshop. Watch it here.
Glassnode released a newsletter titled, Defi Uncovered: Experimental Lending Platforms, where they introduced Liquity and how it works. Read it here.
The Defiant released a tutorial covering how to take out an interest free loan using Liquity. Watch it here.
DeFi Llama published DeFi Deep Dive #7: Liquity, where they covered Liquity, how it works, and how it handled the 5/19 crash. Read it here.
We published A Beginner’s Guide to Trove Management, which covers the basics of managing a Liquity Trove. Read it here.

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