Welcome to the Bi-Weekly Wrap Up, a bi-weekly series where we go over all of the highlights within the Liquity ecosystem. This issue covers 1/3/22 – 1/16/22.

What is Liquity? Liquity is a decentralized borrowing protocol that allows you to draw 0% interest loans against Ether used as collateral. Learn more.

Before we continue, we want to remind everyone that we have published a full report covering Liquity’s performance during Q4 2021! For those interested, read it here.

System Overview

• In the last Wrap Up, we covered the market turmoil during weeks of 12/6/21 - 12/12/21 and how it seemed to coincide with the news of the Consumer Price Index hitting a four-decade-high of 6.8%. Since then, the market has remained shaky as the ETH price has dropped from ~$3,900 to as low as ~$3,000 on Jan. 8, 2022.

• With volatility, liquidations usually follow. There have been 37 liquidations from December until January 17. This statistic is comparable to MakerDAO, which had 40 ETH-vault liquidations in that same time period.

• In addition to liquidations, high repay ratios are also common during bearish market conditions. In the chart above, Borrow vs Repay ratios are displayed with the months December and January highlighted. This ratio has been volatile with the repay ratio slightly winning, although over the last week the borrow ratio increased to 82.8%! Overall, this is a good sign that Trove owners are adjusting to market conditions.

Integrations

• I started a discussion on BanklessDAO’s governance forum about including LUSD as a treasury asset. Read and discuss here.
• A new LUSD3CRV six-month-term is live on Element Finance, a fixed-rate protocol. View the tweet here and a tutorial for Element Finance here. 
• LUSD now has a core reactor on Tokemak, a liquidity-provisioning protocol. Use it here.
• LQTY is now available on Coinbase and Huobi. Details for Coinbase here and Huobi here.
• OlympusDAO is ready to deposit their LUSD into the Stability pool. This will allow them to earn revenue on their LUSD and increase the risk free value of the treasury. Read and discuss on the forum post here.

Content

• Kolten joined Chris Blec on the Proof of Decentralization Podcast to discuss how Liquity works, its differences from MakerDAO, and more. Watch it here.
• Robert, the CEO and Founder of Liquity, joined IOSG’s Scaling Summit to discuss scalability in DeFi. Watch the roundtable discussion here. 
• We posted a video highlighting many of the team members behind Liquity and their stories. Watch it here.
• A series of large loan shifts from MakerDAO to Liquity using DeFi Saver occurred. View the details here.
• I published a blog post covering how Synthetix uses LUSD, why they chose LUSD, and more. Read it here.

Liquity Resources:

Website | Twitter | Discord | Telegram | Github | Reddit | LiquityCN

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