Liquity — Weekly Wrap Up #7

Kolten Bergeron

May 31, 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 5/24–5/30.

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

We’re starting to see an uptick in the number of open Troves — climbing from a recent low of ~495 Troves on 5/24 to ~677 Troves at time of writing. In that time frame the LUSD supply has grown from ~485M to ~719M.

Further highlighting the above point, it seems users are starting to get more comfortable with ETH’s market conditions and are continuing to borrow. More LUSD has been minted than burned over the last 6 out of 7 days.
Liquity has 933K ETH locked — $2.39B as of 5/31.
Find more system stats here.

Integrations

sCIP#39: Add a DAI/USDP/LUSD d3Pool was proposed to Curve governance last week. In short, it aims to create a new 3Pool with LUSD, DAI, and USDP — three of the most decentralized stablecoins in DeFi. The signal vote passed today in convincing fashion, results here.
CIP-2: Gain revenue from Liquity’s Stability Pool Mechanism was proposed to Celer governance last week. This proposal aims to create a yield bearing strategy that takes users’ deposited ETH, borrows LUSD against it, and deposits that LUSD to the Stability Pool to earn yield. The proposal appears to be in early stages, so feel free to leave feedback on their forum.

Content

Last week, Liquity’s CEO and Founder, Robert Lauko, joined the Bankless team for a live AMA. They discussed Liquity’s design, how it works, and how it performed on 5/19. Watch it here.
I was a guest writer for the Bankless newsletter last week, where I wrote a tutorial on how to borrow against your ETH using Liquity. Read it here.
Community moderator, Derrick, wrote a blog post describing how to earn rewards using Yearn’s CrvLUSD Vault. Read it here.
DeFi content creator, Ceazor, created a beginner-friendly explainer describing Liquity and LUSD. Watch it here.

‍

⟵ Blog