Liquity is LIVE on Ethereum mainnet!

Core Features

Liquity is a decentralized borrowing protocol that offers unprecedented benefits for borrowers.

Stability Pool Overview

The Stability Pool is the first line of defense in maintaining system solvency. It achieves that by acting as the source of liquidity to repay debt from liquidated Troves—ensuring that the total LUSD supply always remains backed. The Stability Pool is funded by users transferring LUSD into it (called Stability Providers).

8 Incentives for Stability Providers

Incentives for Stability Providers

Users can deposit LUSD tokens to the Stability Pool and make the protocol more robust against ETH price drops.

Stability Providers are incentivized by Liquity in two ways:

  • Liquidation gains: Liquidations of ETH loans (Troves) will generally lead to a net gain for the Stability Pool, consisting of the difference between the absorbed debt (in LUSD) and the received collateral (in ETH). Stability Providers participating pro rata with their pool deposits thus acquire collateral from liquidated positions at a significant discount.
  • Rewards: Stability Providers will continuously receive LQTY tokens based on the deposited LUSD and the kick back rate of the frontend through which their deposits are made. 

Stability Providers can withdraw their ETH gains and LQTY rewards at any time, while LUSD deposits can be withdrawn as long as the system contains no liquidatable debt.