Liquity.org Review 2021

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Liquidity of assets has always been an issue in the world of Blockchain and cryptocurrency. Today, the brand new platform of Liquity.org stands to eliminate the problems with the liquidity of crypto assets with the help of its advanced protocol of decentralized borrowing.

The platform has been engineered to generate unprecedented liquidity of assets secured against Ethereum as collateral. The native stablecoin token of Liquity.org is LUSD. The inherent value of LUSD is comparable to that of the US Dollar. At face value, the LUSD token LUSD is fully redeemable against the value of the underlying collateral assets on the Liquity.org platform.

Similar to other stablecoin platforms, Liquity.org enables the users to mint tokens in the form of self-serviceLiquity.org stands out among the rest because it does away with the inaccuracies of human intervention by the algorithmic adjustment of redemption and loaning costs for supporting the fluctuating market value of the LUSD token. The fees for both loan issuance and redemption are set at an initial default value of 0%, and this value is set to increase in tandem with the redeemed amounts at times when the redemption activity level is low.

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The platform of Liquity.org is especially renowned for its novel mechanism of liquidation that allows it to stay capital-efficient amid market shocks. At present, the team at Liquity.org is working on developing an incentive framework for the decentralized front end for the maximization of censorship resistance and strengthening the network’s security. Read the detailed Liquity.org review that seeks to define Liquity.org in order to provide more information about the platform. 

What Is Liquity.org?

Liquity.org is a platform that operates the protocol of decentralized borrowing of assets. The users of Liquity.org use the unique protocol to obtain crypto-asset loans from the platform at 0% interest by the deposit of Ether token as collateral against the loan. The minimum ratio of collateral is set by the platform at 110%. Liquity.org offers the loan in the form of LUSD, a stablecoin whose current value is pegged at the value of USD, which is $1.

At Liquity.org, the loans are secured against collateral assets and secured by other borrowers who collectively serve as guarantors and, most importantly, by the Stability Pool of Liquity.org. The Liquity.org reviews reveal that the platform’s protocol is immutable, non-custodial, and governance-free due to its decentralization.

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Liquity.org Platform InterfaceLiquity.org Platform Interface

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How Can I Use Liquity.org?

The first step to using Liquity.org is to visit the official website of the platform at Liquity.org. For borrowing a crypto loan from Liquity.org, the user needs to follow the steps mentioned below:-

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  • Selecting a web-based interface to gain access to the platform. Liquity.org does not offer a front-end web interface, but that does not pose a problem. The users of Liquity.org can easily access third-party front-end web-based interface applications from the list on our website.
  • Integrating the third-party front-end interface with Liquity.org to access the platform.
  • Placing a borrow request to withdraw the required loan in LUSD from Liquity.org.
  • Paying the borrowing fee and keeping ETH as collateral to obtain funds from the platform.

Features of Liquity.org

Conventional procedures of lending and borrowing of loans are neither secure nor financially effective. In contrast to conventional loans, it is more capital-efficient to borrow loans from Liquity.org. The prime benefits of Liquity.org are mentioned below:-

  • An interest rate of 0% in lending cryptocurrency loans.
  • A collateral ratio of only 110%.
  • Every operation of the platform is fully automated by advanced algorithms, and therefore, free of governance.
  • The native token of the platform, LUSD, is directly redeemable at face value against the collateral assets.
  • No one controls the lending protocol of Liquity.org, and therefore, it is completely safe and censorship-resistant.

Liquity.org Core FeaturesLiquity.org Core Features

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Is Liquity.org Regulated?

According to a Liquity.org review, the platform of Liquity.org is regulated by Article 13 of the Swiss Federal Constitution. The operation of Liquity.org is also subject to the regulations and rules of the Swiss Confederation. The platform also has the most robust security technologies in place to protect the databases against unauthorized third parties and hackers.

The platform falls under the purview of the Swiss data protection law and the legal principles of the EU DSGVO for the maintenance of confidentiality of private data.

Liquity.org Review: Pros and Cons

Pros Cons
The platform is completely decentralized. The customer support helpdesk is not promptly responsive and only available over email.
The interest rate for borrowing loans is 0%.  
The collateralization ratio is only 110%, which is quite low in comparison to other platforms.  
The platform is governance-free, and so there is no risk of manipulation.  
Liquity.org is censorship-resistant.  
The platform maintains high security with regard to data and finance.  

Getting Started With Liquity.org Registration Process

The Liquity.org Protocol is one one the top-performing DeFi lending protocols of today. The dual-token nature of the protocol enables the users to obtain loans in LUSD and LQTY (Liquity.org Token).

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To get started with Liquity.org, the user needs to register on the platform and then link the wallet to the account to start borrowing loans. Liquity.org does not provide a front-end web interface, and therefore, the user must download and install an interface to access the lending protocol of the platform.

Users can deposit Ether as collateral and borrow loans at 0% interest rate only from Liquity.org.Find the below beneficiary methods:-

Interest-Free Borrowing

The Liquity.org protocol generates the LUSD tokens. As such, there is no incurrence of the capital cost that gets transferred to the users. Nor is there any need to meet overhead charges for the regulation of money supply in the form of interest rates. At Liquity.org, users can apply for borrowing LUSD loans by simply locking in Ethereum assets as collateral. The users do not have to pay any interest to avail of the decentralized lending facility.

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However, the users have to meet the payment of the borrowing fee, which is of a nominal amount. The borrowing fee rate depends on the current base rate that is determined by an algorithm based on the redemption volume.

Low Collateralization Ratio

Most platforms charge a high fee of collateralization for providing DeFi loans. Liquity.org Protocol offers a collateralization ratio of only 110%, owing to the instantaneous liquidation mechanism of the liquidity protocol of the platform.

Therefore, the borrowing system of Liquity.org is highly capital efficient, according to the Liquity.org reviews, the platform can offer a leverage of up to 11x for trade and investment with its collateral ratio. Liquity.org is the best platform for collateralized debt positions (CDPs) among other DeFi lending platforms like Maker, Compound, and Aave, which provide over-collateralized loans at a surcharged interest rate of 150% or more.

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Governance-Free

Most of the popular DeFi lending protocols in the money markets are only decentralized in the name. These protocols are generally prone to manipulation by financial giants when they cast votes on governance proposals. These voting processes are usually centralized, so the DeFi lending platforms are never entirely free of governance. The Liquity.org review reveals that Liquity.org is completely governance-free and, therefore, securely shielded against manipulation.

Liquity.org Governance Free ApproachLiquity.org Governance Free Approach

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Liquity.org LUSD

LUSD is a unique stablecoin and native cryptocurrency token of Liquity.org. It can be redeemed against Ethereum, based on its face value at any time of the day. The price floor and ceiling of LUSD helps in maintaining its value of $1.This innovative pricing of LUSD leads to the creation of arbitrage opportunities called hard peg mechanisms for the users. LUSD also uses a soft peg mechanism for ensuring parity with the US Dollar.

Liquity.org Token (LQTY)

LQTY is the second token of Liquity.org that is offered as a reward to the stability providers. This token serves as an incentive for the early adopters and the operators of the front-end interface. The users can also earn LQTY by making deposits of LUSD at the Stability Pool. Users can also engage in the staking of LQTY tokens to rake in a share of fees paid for LUSD redemptions and loan issuance.

Security by Liquity.org

Liquity.org is 100% secure as the platform is diligently audited and scrutinized by developers to eliminate loopholes and software bugs. The platform also ensures the security of finances with its non-custodial infrastructure.

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Every token on the platform is held and handled by an algorithm and governed by the smart contract code. There is never any third-party intervention on the platform.

Liquity.org Customer Support

On the Liquity.org platform, customer support is available through email. Users can send an email to get issues resolved. There is a faq section on the official Liquity.org website that offers help with general issues. The platform also has an engaging community on Twitter, YouTube, and Discord for help and interaction.

Liquity.org Review: Our Verdict

With a collateralization ratio of only 110% and an interest rate of 0%, Liquity.org is one of the most advanced DeFi lending protocol platforms today. The Liquity.org protocol is free from governance, and the lending service of the platform is 100% censorship-resistant. Its dual-token model allows the use of both LUSD and LQTY tokens.

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Moreover, the services of this crypto loan platform are compatible with Blockchains that are enabled to operate smart contracts. At present, the total value locked on the platform has surged to more than $3 billion, thereby indicating the growing popularity of the platform.

Meet the Liquity.org Team & Explore Its ServicesMeet the Liquity.org Team & Explore Its Services

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FAQs

Is Liquity.org Legit and Safe?

Liquity.org is legitimate, and it’s safe to use as well. The platform is regulated by the Swiss Confederation. Its operations are free from governance by third parties, which makes it completely secure.

How Can I Earn Money on Liquity.org?

There are two ways to earn money on the platform of Liquity.org, as mentioned below:-

  • Making deposits of LUSD at the Stability Pool to earn money in the form of LQTY rewards and liquidation gains.
  • Keeping a stake of LQTY to earn revenue in the form of ETH and LUSD from the redemption and borrowing fees.

Does Liquity.org Charge Any Fees?

Liquity.org charges a nominal one-time fee whenever the users borrow assets in the form of LUSD from the platform.

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  • Borrowers need to pay a borrowing fee as a percentage of the loan amount while borrowing LUSD loans from the platform.
  • The users who are redeemers need to meet the redemption fee on the basis of the amount that the platform pays to the users during the exchange between ETH and LUSD.

Where Can I Buy Liquity.org?

At present, the price of the Liquity.org token is $6.15, according to CoinMarketCap. The price of the token has increased by almost 3.83% since yesterday. According to the latest statistics, there are around 6,220,493 Liquity.org coins in circulation. Traders and investors can purchase Liquity.org on the official website.

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