September 25, 2020
We are pleased to announce that Liquity has raised $2.4M in seed funding to support the growth of the team and protocol. The round was led by Polychain Capital, with follow on investments from a_capital, Lemniscap, 1kx, DFINITY Ecosystem Fund, Robot Ventures (Robert Leshner), and Alex Pack. The latest round of investors join Tomahawk.VC, who led Liquity’s pre-seed round earlier this year.
Liquity is thrilled to have investors on board who support our mission of improving access to on-chain borrowing, reducing interest rates, and minimizing governance. This round brings with it a deep bench of advisors who have participated in some of the most exciting DeFi protocols to date. In addition, several of our investors have committed to help bootstrap the network and plan to be active users of Liquity’s products.
We could not be happier with this group. They have already helped us tremendously over the last few months, and we’re really looking forward to showing you all what we are able to accomplish together as we get closer to launch.
Liquity is building a borrowing protocol for Ethereum that will issue interest-free loans (called “troves”) in its own USD-pegged stablecoin, LUSD, to borrowers. The troves are collateralized with ETH at a minimum collateralization ratio of only 110%, thanks to a novel efficient liquidation process for troves that fall below the minimum ratio.
The protocol is fully algorithmic without any human governance, relying on a decentralized network of financially incentivized front end operators.
Stay liquid and get involved in our Discord channel!