Dual integration: $LUSD & $LQTY

Dual integration: $LUSD & $LQTY

DeFi protocols are always a welcome addition to our partnership list, be it through token integrations or just general collaborations. Liquity has recently attracted our attention, and as we are always on a quest to further diversify our payment methods, the next logical step was to integrate their two tokens, $LUSD and $LQTY. It's been a while since we had a dual token integration, however, when we find the perfect partner, it's too good of an opportunity to miss!

Before we dive into what Liquity does and what utility they serve, add their contract addresses below in your digital wallets and use them for payments of any kind within the HYVE Platform!

$LUSD - ETH: 0x5f98805A4E8be255a32880FDeC7F6728C6568bA0

$LQTY - ETH: 0x6DEA81C8171D0bA574754EF6F8b412F2Ed88c54D

What is Liquity?

Dive into Liquity, the decentralized lending universe where you can bag interest-free loans using Ether as your collateral safety net.

When you secure a loan, you receive it in LUSD, their reliable stablecoin that's hitched to, you guessed it, the good ol' USD. The minimum collateral ratio is kept at 110%. All loans on Liquity are secured by a stability pool, which consists of $LUSD, and by fellow borrowers who collectively act as guarantors of a last resort.

Stable-value assets are an essential building block for Ethereum applications and have grown to represent tens of billions of dollars in value. One of the main issues with today's stablecoins is that a vast majority are centralized. Liquity addresses this by creating a more capital-efficient and user-friendly way to borrow stablecoins. Liquity is a non-custodial, immutable, and governance-free protocol, ensuring total decentralization.

To recap, Liquity's main benefits are:

  • 0% interest rate, meaning no worry about accruing debt
  • 110% minimum collateral ratio
  • governance free
  • directly redeemable $LUSD at face value
  • fully decentralized

Furthermore, Liquity recently announced their V2, two years after launching their $LUSD stablecoin and providing $4.5 bn of interest-free loans. Liquity is building an alternative product, but knowing them, it will definitely be a great one, as it will crack the stablecoin trilemma.

$LUSD and $LQTY simplified

Now that we did a rundown of the protocol, let's talk about the tokens. Think of $LUSD as your trusty dollar in digital form. This USD-mirrored stablecoin is what you get when you take out loans on Liquity. The cool part - you can swap it anytime for its actual worth in underlying collateral.

$LQTY on the other hand is the protocol's sparky secondary token. Not only does it soak up the fee earnings from the system, but it also incentivizes early adopters and frontends. The total supply is capped at 100,000,000 tokens, with a different mechanism of rewards and distribution across time.

Back to HYVE!

This week has been especially lucrative in terms of partnerships, starting from the AVAX integration, followed by the 24 tokens as well as some returning collaborations. This partnership marks the end of Q3, but this means you should get excited for what comes next in Q4. We are planning to close the year in full throttle - drop us a mention of X with what partnership you want next!