Decentralized borrowing protocol Liquity is now reside on the Ethereum mainnet.
The launch comes every week after the startup raised $6 million in a Collection A spherical led by funding agency Pantera Capital with participation from Nima Capital, Alameda Analysis, and several other others.
Based in January 2020, the Ethereum-based lending protocol permits customers to attract loans in opposition to ETH with a minimal collateralization ratio of 110% — decrease than the 150% ratio required for MakerDAO — and doesn’t cost a recurring “stability charge” the best way Maker does.
Loans are issued in LUSD, a USD-pegged stablecoin. Customers can deposit LUSD to a “stability pool” to earn rewards in ETH and LQTY, the protocol’s token. All the protocol’s operations are algorithmic and absolutely automated, minimizing the necessity for governance.
“We consider Liquity will unlock an entire suite of recent capabilities for DeFi customers, and is pushing the house ahead with their distinctive ‘governance-light’ protocol method,” mentioned Polychain co-founder and CEO Olaf Carlson-Wee in a press release. Polychain, which is Liquity’s largest investor.
Disclosure: Pantera was an investor in a previous funding spherical for The Block.