Liquity

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.

Liquity Protocol's @SamExotic3 will join Fringe to discuss the recent V2 launch and integration of $LUSD on Arbitrum, Optimism, and Ethereum markets. The event will take place on Feb 14th at 3 PM UTC.

Liquity's LUSD is now supported as collateral on Arbitrum thanks to SiloFinance, providing users with more options for utilizing their assets.

Submissions are now open for the January Community Rewards. If you have contributed to the growth of the Liquity ecosystem, you can submit your claim now.

Liquity's stablecoin LUSD can now be traded on LineaBuild. For providing liquidity, users can head to NileExchange, a decentralized exchange.

Liquity is looking for a Head of Product & Growth to lead the success of Liquity v2. If you are a DeFi enthusiast with a passion for driving growth, check out the details here.