Ethereum Lending

What is the LQTY token used for?

What is LQTY

LQTY the staking token of Liquity. It is not a governance token.

LQTY token is used for

  • Earn fees from issuance and redemptions of loans.

How could value accrue to LQTY token


Liquity incentivizes 3rd parties to run frontends. Potentially an interesting bootstrap for marketing/community.

Locking tokens

  • Staking.


  • Revenue to token holders when staking LQTY.

What is Liquity

Liquity is a lending protocol with a stablecoin called LUSD.

How it works

Deposit ETH (only asset right now) and borrow LUSD with 110% collateral ratio.

Users can deposit LUSD in the stability pool to earn collateral from liquidations. The liquidity pool is the backstop for the system.

  • When a position drops below 110% collateral the protocol will instantly liquidate it using the stability pool if needed.
  • In return the stability pool providers will receive the liquidated collateral which should equal more than the LUSD lost.


  • Liquity has no governance.


Users earn from liquidations and LQTY rewards when providing LUSD to stability pool.


  • Frontends are run by 3rd party operators. The operator sets a kickback rate on the liquidations and fees to the user.


Liquity uses Chainlinks ETH/USD price and Tellor as a backup oracle.

A thorugh breakdown is found in the developer github.

Token issuance

Total Supply: 100,000,000

  • 32% – Rewards
  • 1.33% -LP Rewards
  • 2% – Community reserve
  • 23.7% Team and advisors
  • 33.9% Investors
  • 6.1% Liquity AG endowment
  • 1% Service providers

All team and investors tokens are locked for 1 year. See breakdown of issuance.


Similar projects

Token price

Crypto Taxes

Yeetfi uses Koinly (affiliate) for taxes on crypto. We tried several services and Koinly was the only one that actually worked.