#Liquidity101

Liquity is a decentralized borrowing protocol on Ethereum, offering interest-free loans against ETH collateral. Users deposit ETH into a "Trove" and mint LUSD, a USD-pegged stablecoin. Unlike other platforms, Liquity charges a one-time borrowing fee, not ongoing interest. Its design emphasizes immutability and censorship resistance, with no governance token influencing core protocol rules. Liquity maintains LUSD's peg through liquidation mechanisms and a Stability Pool, where LUSD holders can deposit funds to earn liquidated ETH. This system aims for maximum capital efficiency and robust decentralization within the Ethereum ecosystem.