Hey everyone! Welcome to our monthly newsletter where we share updates regarding Liquity and our ecosystem on a regular cadence.

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Development Updates

Bug bounty program: The Liquity bug bounty program has officially started. Vulnerability reports will be scored using the CVSS v3 standard and rewards range from $500 to $50,000.

All smart contract components of the Liquity protocol are in scope for this bug bounty. We’ve opened sourced much of our codebase — found here — and have provided a high level overview of the protocol here. If you have questions while poking around, feel free join our community Discord.

Final audit before launch: We have enlisted the help of Coinspect to do a final audit before launch. They’ve worked with projects like Grin, Zcash, Aragon, and others in the past and we’re excited to have them review Liquity. Since Liquity is a governance-free, immutable protocol, it makes sense for us to get an extra set of eyes on the codebase.

As we near the end of the audit, we’ll provide more updates on our launch timeline.

Improving our Developer UI: Our current UI that provides access to the test net version of Liquity is bare-bones and admittedly not user-friendly. Lately, we have received lots of feedback from our community which is greatly appreciated. Our latest hire, Ed Mulraney (see below), and our seasoned frontend developer Dani Simon are joining forces to revamp the Developer UI in the weeks leading up to launch. They are going to tweak the current interface by separating functionalities across multiple pages, displaying clearer CTAs, showing the Liquidation Reserve more clearly, and making error messages more meaningful (e.g. when people are unable to withdraw their Stability Deposits due to unliquidated Troves).

However, our UI plans don’t stop here! The revamped UI that we‘ll initially provide as a launch kit to Frontend Operators won’t be the final UI. Thanks to the awesome UX/UI design help from Deep Works, we have a set of mockups ready for implementation. The new UI will come with cool new features such as wizard-like user guidance and history views / system statistics powered by The Graph. In addition to that: We are expecting (and excited) to see more custom, third-party frontends like Liquity.fi and others.

Updated Whitepaper

Earlier this month we released an up-to-date version of the Liquity whitepaper. Some of the changes include:

• Redesign of Recovery Mode
• Out-of-order and batch liquidations
• Gas Compensation & Liquidation Reserve
• Fee slippage protection

There is also an associated blog post detailing the changes here.

New Hire

On February 15, Edward (“Ed”) Mulraney joined our team of developers as a full-stack engineer with deep front-end experience.

Ed is based in Bristol UK and has been working as a full-stack engineer since 2009. He joined us from NatWest Bank where he had been working as a Lead Engineer on their banking app. Earlier in his career, Ed developed a submarine communication system for the Royal Navy’s Astute class submarine!

Ecosystem / Content Update

• Liquity — Founder Robert Lauko | Meet the Nation: Robert sat down with David Hoffman to introduce Liquity to the Bankless community. They covered governance minimization, how LUSD maintains its peg, LQTY rewards, and more.
• Liquity: The Long-term Vision: In this video, Robert describes Liquity’s long-term vision to enable anyone to invest in high yield assets — regardless of income.
• Liquity Use Cases: A video describing the three primary users of Liquity: Borrowers, Stability Providers, and Stakers. Also available as a blog post here.
• How Faster Liquidations Improve Capital Efficiency: In this blog post, Robert describes how faster liquidations improve capital efficiency in borrowing protocols like Liquity.
• There’s over 2,200 Troves on Ropsten and Kovan. Our community has been very active — opening over 2,200 Troves across Liquity’s multiple test net deployments.
• 【區塊先生】Liquity 下一個MakerDAO? (259集). YouTuber and community member, Mr. Block, explains some of the differences between Liquity and MakerDAO in Chinese.
• 【區塊先生】DeFi 借貸協議 Liquity — Kovan 測試網 (260集). Mr. Block created a second video explaining how to use the Liquity dev UI in Chinese.

Resources: Website | Twitter | Discord | Github

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