Liquity Protocol attracts $ 1 billion TVL in just 10 days


The team behind Liquity Protocol – a DeFi project that launched April 5 – has raised $ 1 billion in locked-in value, according to data from Dune Analytics.

The Pantera Capital-backed Liquity is a Swiss-based decentralized and board-free credit protocol that offers interest-free loans against Ethereum that are locked as collateral, requiring users to maintain a minimum collateral ratio of 110%.

Loans are disbursed in the protocol’s algorithmic stable currency LUSD, which is pegged to the USD value at a one-to-one ratio. The protocol automatically generates LUSD to meet user demand and has generated a stock of 480 million stable coins so far, minting more coins every day than burning.

The loans are backed by the Protocol’s stability pool, which acts as a source of liquidity to repay liquidated debts, as well as by co-financiers acting collectively as guarantors of last resort. Users can make money through the protocol by deploying liquidity and generating income from issue fees in LUSD and redemption fees in ETH.

Data from the giant 10-day run published via DuneAnalytics revealed that loan demand has rewarded strikers to date, with an average of about $ 240,000 in fees generated per day based on the protocol between April 12 and April 14. April 15th, and the majority of users remain within a collateral range of 150-250%.

On March 29, CoinTelegraph reported that the Liquity Protocol had closed its Series A funding round led by Pantera Capital with an investment of $ 6 million, including additional contributions from companies such as the quantitative investment firm Alameda Research.

The decentralized financial protocols industry continues to push past its all-time highs, with data aggregator DeFi Llama showing that there is now $ 123.33 billion in total locked-in value in DeFi protocols as of today. In its short lifespan, the Liquity Protocol has risen itself to 26th place in the top 100 DeFi protocols with $ 1.06 billion in TVL.