Liquity — Weekly Wrap Up #16

Welcome to the Weekly Wrap Up, a weekly series where I go over all of the highlights in the Liquity ecosystem. This issue covers the week of 9/6–9/12.

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

System Overview

Last week was Liquity’s second biggest week of liquidations (in terms of value) since launch, though it paled in comparison to the 5/19 market crash. The market took some riskier Troves down with it on 9/7 when ETH quickly dropped from ~$3,900 to ~$3,000. After the dust settled, three Troves and a total of 3,840 ETH were liquidated.

With the market continuing to press downward, users are starting to pay off their debts (burn LUSD) to secure their positions. The market has quickly pivoted from risk on to risk off.

I highlighted in the last Weekly Wrap Up that LUSD’s Curve 3Pool was starting to eat into the Stability Pool’s market share and that continues to be the case. Stability Pool utilization is now at an all time low of 75.9% and the Curve pool has climbed to 21.9%.

Integrations

The LUSD / WETH pool on Sushiswap has been added to the Onsen rewards program. Users can now provide liquidity and earn SUSHI rewards. Add liquidity here.
Instadapp’s JavaScript SDK opens up new opportunities for Liquity Frontend Operators by allowing them to interact with Instadapp DSAs. Learn how to integrate here.
OlympusDAO has an OIP to add LUSD to their treasury as a hedge against centralized stablecoin risk. Users will be able to purchase OHM bonds with LUSD and (in the near future) earn LQTY and OHM rewards from an LUSD-OHM pool on Sushiswap. Read the proposal here.

Content

We will be hosting an AMA in collaboration with the r/AltStreetBets subreddit on 9/16/21. Drop your questions here.
Derrick published a tutorial covering how to use Liquity on Instadapp and earn INST rewards. Read it here.
Partner at Lemniscap, Shaishav, posted a Twitter thread covering why he believes Liquity’s Stability Pool is one of his favorite ETH long strategies available in the DeFi space today. Read it here.

Liquity Resources:

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