Liquity — Weekly Wrap Up #21

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

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

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https://www.coingecko.com/en/coins/ethereum

It’s been a rocky week or two for the market. ETH has dropped from its weekly high of ~$4,500 to $3,937 at time of writing. This drop seemed to coincide with the news that the Consumer Price Index hit a four-decade-high of 6.8% — which means U.S. inflation is running hot. As a result, the Fed may have to hike interest rates, leading to some unstable market conditions across stocks and crypto.

Such market conditions lead to users de-risking and paying off some of their LUSD debt. Over the past week ~64m LUSD debt was paid back.

Trove growth also stalled this past week after hitting all time highs, which usually means users are either closing their Troves (de-risking) or aren’t as eager to open Troves in this environment.

Integrations

1inch has integrated the LUSD wrapper from Synthetix. This allows for an instant wrap and conversion between sUSD and LUSD on L1. Announcement here.
Derrick published a proposal to add LUSD to Aave. An LUSD market on Aave would open up more demand for LUSD and more opportunities for LUSD holders. Read and discuss here.
A vote to ramp the A parameter from 100 to 500 on the Curve LUSD+3Pool has passed. View the vote here.

Content

Joey, Founder of Fei Protocol, and Jai, Founder of Rari Capital, joined us on Liquity Live for a discussion about stablecoins, what makes Rari unique, their proposed merger, and more. Watch it here.
TokenBrice published the EN version of his in-depth blog post covering Liquity and its ecosystem. Share the tweet here and read the blog here.
I published a blog post covering LUSD as a DAO treasury asset. It outlines why LUSD makes an ideal stablecoin for DAOs, how to acquire it, and its use-cases. Read it here.

Liquity Resources: