LQTY Liquity Rank #901 $0.1696 ▼ 1.85%

LQTY is the governance and revenue-sharing token associated with the Liquity Protocol, a decentralized borrowing platform built on Ethereum. By staking LQTY, holders can capture a share of the fee revenue generated by the protocol's operation. Liquity functions as a non-custodial lending system that enables users to draw interest-free loans using Ether as collateral. Loans are issued in LUSD, a USD-pegged stablecoin, and require a minimum collateral ratio of 110%. The protocol's stability is maintained through a Stability Pool funded with LUSD, which absorbs liquidated debt, while remaining borrowers collectively act as guarantors of last resort. The protocol is designed to be immutable and free of governance mechanisms, meaning it operates without any administrative body capable of altering its core parameters. LQTY falls within the Decentralized Finance category and is part of the broader Ethereum and Arbitrum ecosystems.