Liquity

Liquity is a decentralized borrowing platform that operates on the Ethereum network. The platform enables users to borrow and lend funds using the Liquity stablecoin known as LUSD. Using smart contracts, Liquity maintains a 1:1 peg with the US dollar, ensuring price stability. The platform uses an overcollateralization approach, meaning borrowers must pledge collateral that exceeds the value of the loan. This reduces the risk for lenders while providing borrowers with a lower interest rate. The platform also features an automatically adjusting Stability Pool that ensures the system remains solvent even under extreme market conditions. Liquity aims to provide users with a more affordable, secure, and efficient borrowing and lending experience, while leveraging the transparency and security benefits of the Ethereum network.