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Liquity — Weekly Wrap Up #21

Liquity — Weekly Wrap Up #21

Kolten Bergeron

December 13, 2021

Welcome to the Weekly Wrap Up, a weekly series where we go over all of the highlights within the Liquity ecosystem. This issue covers the week of 12/6–12/12. 

What is Liquity? Liquity is a decentralized borrowing protocol that allows you to draw 0% interest loans against Ether used as collateral. Learn more.

System Overview
  • It’s been a rocky week or two for the market. ETH has dropped from its weekly high of ~$4,500 to $3,937 at time of writing. This drop seemed to coincide with the news that the Consumer Price Index hit a four-decade-high of 6.8% — which means U.S. inflation is running hot. As a result, the Fed may have to hike interest rates, leading to some unstable market conditions across stocks and crypto.
  • Such market conditions lead to users de-risking and paying off some of their LUSD debt. Over the past week ~64m LUSD debt was paid back.
  • Trove growth also stalled this past week after hitting all time highs, which usually means users are either closing their Troves (de-risking) or aren’t as eager to open Troves in this environment.


  • 1inch has integrated the LUSD wrapper from Synthetix. This allows for an instant wrap and conversion between sUSD and LUSD on L1. Announcement here.
  • Derrick published a proposal to add LUSD to Aave. An LUSD market on Aave would open up more demand for LUSD and more opportunities for LUSD holders. Read and discuss here.
  • A vote to ramp the A parameter from 100 to 500 on the Curve LUSD+3Pool has passed. View the vote here.


  • Joey, Founder of Fei Protocol, and Jai, Founder of Rari Capital, joined us on Liquity Live for a discussion about stablecoins, what makes Rari unique, their proposed merger, and more. Watch it here.
  • TokenBrice published the EN version of his in-depth blog post covering Liquity and its ecosystem. Share the tweet here and read the blog here.
  • I published a blog post covering LUSD as a DAO treasury asset. It outlines why LUSD makes an ideal stablecoin for DAOs, how to acquire it, and its use-cases. Read it here.

Liquity Resources:

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