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What is Liquity coin (LQTY) and how does it work?

by Financial Economy

The Liquity project is a decentralized borrowing protocol that runs on the Ethereum blockchain and uses Ethereum (ETH) to lend to LUSD (a USD-pegged stablecoin). The native cryptocurrency of the platform is LQTY coin. Detailed information about what is Liquity coin (LQTY), how it works, how much is the price, how to buy it, which exchange is it on, etc. is in the continuation of the content. You can browse here for information about NFT token.

What is Liquity coin (LQTY) and how does it work?

Liquity is a decentralized borrowing protocol that allows you to take out 0% interest loans against Ether used as collateral. Loans are paid in LUSD, a stable USD stablecoin, and they only need to maintain a 110% minimum collateral ratio. In addition to collateral, loans are secured by a Stability Pool containing LUSD and other borrowers collectively acting as guarantors of last resort. As a protocol, Liquity is custody-free, immutable, and free from governance.

LUSD is the USD pegged stablecoin used to pay loans in the Liquidity protocol. It can be redeemed at any time at face value against the underlying collateral. LQTY is the secondary token issued by Liquidity. It captures system-generated fee revenue and incentivizes early adopters and front-ends. The total LQTY supply is capped at 100,000,000 tokens.

The purpose of the Liquity project!

The main purpose of the Liquity project is to make it easy for users to borrow LUSD for ETH and repay the loan in the future without having to sell the ETH collateral. Ethereum is the only collateralized crypto asset type backed by Liquity.

How to buy liquidity coins? Which exchanges are LQTY coin available on?

Liquidity coin is listed on many cryptocurrency exchanges and can be purchased from these exchanges. But before making a transaction, it is necessary to make sure that the relevant exchange is “RELIABLE”.

So which exchanges is LQTY coin available on? LQTY coin is listed on cryptocurrency exchanges like Huobi Global, Coinbase Exchange, BKEX, Uniswap (V3), etc.

LQTY coin price!

As of January 17, 2022, the price of 1 LQTY coin is around $5.74 (the price can change instantly).

Caution: The information contained in this content is for informational purposes only. It is not investment advice.

For information about cryptocurrency: https://en.wikipedia.org/wiki/Cryptocurrency

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