Liquity — Weekly Wrap Up #6

Kolten Bergeron

May 24, 2021

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 5/17–5/23.

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 quite dramatic! On Wednesday, 5/19, we saw the ETH price rapidly drop from ~$3,400 to ~$1,800. This caused a series of liquidations across the DeFi ecosystem, Liquity included. On 5/19 we saw around ~300 Troves liquidated and at time of writing there are ~500 active Troves remaining.
During the liquidations last week, ~93.5M LUSD debt was offset against the Stability Pool and ~48,668 of liquidated ETH was distributed to Stability Pool depositors. Allowing Stability Pool depositors to “buy the dip”.
Even after last week’s madness, Liquity still has 849K ETH locked — $2.08B as of 5/24.

Last week, Liquity crossed $10M in revenue — all of which is distributed directly to LQTY holders. Since then, revenue has quickly approached $10.7M.
Find more system stats here.

Integrations

Users can now trade LUSD on Ethereum mobile-wallet Argent.
Pickle Finance supercharged the LUSD Jar with DILL boosts.
Liquity frontend, waterslide, is now running on DFINITY’s Internet Computer.
Liquity BSC fork, Fluity, is now live. Note: Liquity and Fluity are completely separate teams and we have no oversight over the Fluity team. Users should proceed with caution as you would with any new protocol.

Content

Telegram users: We now have an announcement channel for Liquity. Subscribe here.
Liquity was featured in last week’s issue of Our Network. In Liquity’s section, I covered growth since launch, revenue numbers, and (of course) Liquity’s performance on 5/19.
After last week’s price crash, I wrote a blog post detailing how Liquity handled it’s first big stress test. Read it here.
Community moderator, Derrick, wrote a blog post describing how to earn rewards using the LUSD 3pool on Curve. Read it here.
Detailed break down of how Liquity’s Stability performed on 5/19 when buying the ETH dip.

‍

⟵ Blog