You first need to choose a web interface (aka frontend) to access the system. The core team building the protocol will not operate a frontend. Liquity is instead accessed by third-party frontend applications and integration services.
You can find a list of frontends here.
Liquity is a decentralized borrowing protocol that allows you to draw 0% interest loans against Ether used as collateral. Loans are paid out in LUSD - a USD pegged stablecoin, and need to maintain a minimum collateral ratio of only 110%.
In addition to the collateral, the loans are secured by a Stability Pool containing LUSD and by fellow borrowers collectively acting as guarantors of last resort. Learn more about these mechanisms under Liquidations.
Liquity as a protocol is non-custodial, immutable and governance-free. Learn more about the protocol here.
Liquity offers the best borrowing conditions on the market with the main benefits being:
- 0% interest rate
- A collateral ratio of just 110%
- Governance free - all operations are algorithmic and fully automated
- Directly redeemable - LUSD can be redeemed at face value for the underlying collateral, always and at any time
- Censorship resistant - the protocol is controlled by nobody
There are basically two different ways to generate revenue using Liquity:
1. Deposit LUSD to the Stability Pool and earn liquidation gains and LQTY rewards
2. Stake LQTY and earn the revenue from issuance fees (in LUSD) and redemption fees (in ETH)