Liquity is a decentralized borrowing protocol that allows you to draw interest-free loans against Ether used as collateral. In addition to the collateral, the loans are secured by a Stability Pool containing LUSD and by fellow borrowers collectively acting as guarantors of last resort. Liquity as a protocol is non-custodial, immutable, and governance-free.
We were joined by Robert Lauko, CEO & Co-founder, and Kolten Bergeron, Head of Growth, of Liquity. We chatted about how the protocol is built and the mechanisms used, how to borrow, and the stability pool and liquidations.
Topics discussed in the episode
- Robert and Kolten’s backgrounds and how they got into crypto
- What led Robert to create Liquity
- What Liquity is and the liquidation mechanism used
- The function of the stability pool
- The process of existing troves taking on the debt of undercollateralized troves
- Liquity vs Compound & MakerDAO
- LUSD redemptions
- How the Recovery mode works
- The purpose of the LQTY token
- How the algorithmic monetary policy works
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