Liquity

In Liquity v2, liquidation and redemption risks are split - liquidations happen when the LTV is too high and redemptions happen when the interest rate is too low. This system allows users to be capital efficient with high LTV and zero redemption risk with high IR. Users can customize their approach, adjust it as needed, and automate the process for a hands-off position.

Liquity has announced their official account on DeBankDeFi. Follow them for updates.

Liquity Protocol shared that Liquity v2 will revolutionize CDPs in DeFi at EthereumDenver, inviting contributions to this DeFi primitive. They also offered to answer questions about the product's egalitarian nature.

The Liquity team has arrived at the EthereumDenver event and is welcoming discussions about their new product in person. They are encouraging anyone interested in Liquity to reach out to them through DMs.

Blueprintfi_ETH has launched a gas-efficient ve (3,3)+ DEX on Mainnet, integrating both LUSD and bLUSD as assets. Liquidity providers can earn LP rewards for 4 different pairs, including the LUSD / bLUSD pair.

Liquity Protocol is set to launch a new stablecoin featuring user-set interest rates to resist depegging trends caused by Ethena's Anchoresque yield. The stablecoin offers a market-driven monetary policy, which is faster than governance, adaptive to any condition, fully on-chain, and individualized.

Liquity Protocol has made an impressive advancement with redemptions in v2. In v1, redemptions targeted users with the lowest Collateral Ratio (CR), leading to diminishing returns as the system CR rose above 300%. This burnt off TVL with no interest earning capability. In v2, redemptions now target...

Liquity is introducing a user-set interest rate as a new primitive in collateralized debt positions, alongside fixed rate, governance set rates, and algorithmic rate. This innovation brings adaptive and macro-driven policies, reflecting individual needs and tapping into crowd wisdom. The protocol enhances capital efficiency by separating liquidation and redemption risks. Interest rates can be delegated to third parties, ensuring capital efficiency and zero redemption risk.

Recipients of the Community Rewards for January will receive rewards worth 600 LQTY, with @kevin_soell, @CryptosWith, and @Liquity_Th being the recipients. Rewards will be paid out in ETH. The community is encouraged to create content about the new protocol to be eligible for rewards. A refresher on the Community Reward Program was also provided.

Redemptions play a vital role in maintaining the stability of LUSD by allowing users to exchange it for ETH at face value when its price falls. This mechanism has proven effective, keeping LUSD remarkably stable even during times of high selling pressure. Liquity's unique features offer asset protection and resilience, distinguishing it from other stablecoins. However, a surge in redemptions can impact borrowers, prompting Liquity to work on a new product to provide improved redemption protection while maintaining capital efficiency.