🔍 Overview:
$LQTY Y is a supporting token in the Liquity protocol, a decentralized stablecoin lending platform where users collateralize ETH to mint LUSD stablecoin – a stablecoin considered 'pure DeFi', not reliant on off-chain USD or centralized assets like USDC/USDT.
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🧠 Why is $LQTY and Liquity Protocol loved by the DeFi community?
1. LUSD stablecoin is completely decentralized
LUSD can only be minted by collateralizing ETH
Does not contain any centralized assets (USDC, Tether…) → avoids censorship risk
No admin key, no ability to freeze assets
2. No interest – 0% APR loan
Users pay a one-time fee (~0.5%–1%) when borrowing
No accumulated interest → avoids 'account explosion' due to debt increasing over time like AAVE, Maker
3. Cannot mint more LQTY – fixed supply
Total supply: 100 million LQTY
No inflation mechanism, no additional private round → truly scarce
Tokens used to receive fees from the system (through staking)
4. Fair & realistic tokenomics
LQTY is used for staking, receiving rewards from fees paid by borrowers
Holders of LQTY are ‘betting’ on the real growth of LUSD
5. Listed on Binance, Coinbase, Binance.US
One of the few niche DeFi tokens fully supported by major exchanges
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📊 Basic information (7/2025):
Price: ~$1.24
ATH: ~$62.97 ( Binance, Cmc )
Total supply: 100 million
Circulating: ~97.07 million
Stablecoin LUSD in circulation: ~$300M
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⚠️ Disadvantages / Risks:
The system requires TCR (total collateral ratio) >110% → can be liquidated in a strong dump
Due to the lack of interest, the protocol requires incentives from LQTY to attract stakers & front-end operations
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💡 Summary:
> $LQTY is one of the very few DeFi tokens with scarce tokenomics, clear utility, and is linked to a truly decentralized stablecoin with autonomy.
In an increasingly regulated crypto market, solutions like Liquity and LUSD may be a long-term answer to the dream of decentralized stablecoins.
Have you ever used LUSD? Or do you still believe in USDC/USDT?
