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Liquity — Weekly Wrap Up #6
May 24, 2021
Welcome to the Weekly Wrap Up, a weekly series where I go over all of the highlights in the Liquity ecosystem. This issue covers the week of 5/17–5/23.
What is Liquity? Liquity is a decentralized borrowing protocol that allows you to draw 0% interest loans against Ether used as collateral. Learn more.
Last week was quite dramatic! On Wednesday, 5/19, we saw the ETH price rapidly drop from ~$3,400 to ~$1,800. This caused a series of liquidations across the DeFi ecosystem, Liquity included. On 5/19 we saw around ~300 Troves liquidated and at time of writing there are ~500 active Troves remaining.
During the liquidations last week, ~93.5M LUSD debt was offset against the Stability Pool and ~48,668 of liquidated ETH was distributed to Stability Pool depositors. Allowing Stability Pool depositors to “buy the dip”.
Liquity BSC fork, Fluity, is now live. Note: Liquity and Fluity are completely separate teams and we have no oversight over the Fluity team. Users should proceed with caution as you would with any new protocol.
Telegram users: We now have an announcement channel for Liquity. Subscribe here.
Liquity was featured in last week’s issue of Our Network. In Liquity’s section, I covered growth since launch, revenue numbers, and (of course) Liquity’s performance on 5/19.
After last week’s price crash, I wrote a blog post detailing how Liquity handled it’s first big stress test. Read it here.
Community moderator, Derrick, wrote a blog post describing how to earn rewards using the LUSD 3pool on Curve. Read it here.