Liquity

Part 1:&nbsp;Opening
Levi BYDFi: Hey everyone! Welcome to our AMA with the Liquity team.&nbsp;We’re excited to have you all here today!&nbsp;Our mission is to provide the best trading platform for our users by partnering with top blockchain projects.&nbsp;And we couldn’t have done it without the help of Liquity team, the guest of today’s AMA guest!
So, without further ado, let me introduce Bojan! Hey Bojan, glad to have you here. Please tell us a bit about yourself and give us a brief overview of Liquity. We can’t wait to hear more about it!
Bojan: Liquity is a borrowing protocol, similar to maker Dao. You supply ETH and take out a stablecoin, but with several benefits compared to Maker. I joined the team 3 years ago, and before that I was in the VC space and some startups.
Levi BYDFi: Thanks for mentioning that! If anyone wants to learn more about Liquity, check out their official site at <a href="https://www.liquity.org/" rel="noopener noreferrer nofollow">https://www.liquity.org/</a> or join their Discord group at <a href="https://discord.com/invite/2up5U32" rel="noopener noreferrer nofollow">https://discord.com/invite/2up5U32</a>&nbsp;. They’ve got an incredible community to chat with. Don’t miss out on the fun!
<h3 id="part-2-bydfi-withliquity">Part 2: BYDFi with&nbsp;Liquity</h3>
Levi BYDFi: Let’s get this AMA started! Bojan, the Bizdev for Liquity, will answer our questions about the project and its latest developments.
Q1. Can you give us a brief overview of what Liquity is and what problem it aims to solve?
Bojan: Sure, as mentioned we are similar to Maker DAO. What we enable users to do is to kep their ETH exposure, and at the same time get fresh capital. That is similar like when you have a real estate, or stocks, or art pieces… and the bank gives you a loan against it. You do not want to sell those, right? With Liquity you keep your ETH, but get LUSD, the stablecoin, so spend, invest… And we charge 0% interest. How much does your bank charge? 🙂You can borrow up to 90%, meaning 10’000 of ETH gives you 9’000 LUSD, but that much is risky of course.
Q2. What are the core values and principles that guide Liquity’s mission and vision?
Bojan: When we started development, in November of 2019, we wanted to build it in line with the core Ethereum and wider crypto principles.
- It should be immutable
- it should be only governed by code
- It should be very secure
The code cannot be changed, since day 1. There is no governance, no DAO…nothing. And we are top 3 safe protocol: <a href="https://www.defisafety.com/app?orderBy=finalScore" rel="noopener noreferrer nofollow">https://www.defisafety.com/app?orderBy=finalScore</a>
Q3. What are the benefits of borrowing against ETH?
Bojan: There are several benefits:
- You pay no interest. Just a fee of 0.5% and never anything else
- You can take out up to 90% of the ETH value
- Your ETH is in a very secure protocol
- You hold the most decentralized stablecoin
- There is no governance to change anything about this
Q4. What would you suggest if someone wants to start using Liquity Ecosystem?
Bojan: The basic use case is if you holf ETH and want fresh capital. You deposit it and borrow LUSD, then you could go and buy something or use it for yield. We had people buying houses, cars, etc… which is great to see. But you can also do some yield strategy, here are a few: <a href="https://dune.com/murathan/liquity-yields" rel="noopener noreferrer nofollow">https://dune.com/murathan/liquity-yields</a>. To get started go to: <a href="https://www.liquity.org/frontend" rel="noopener noreferrer nofollow">https://www.liquity.org/frontend</a>. You will see there is no central frontend, there are many community built ones, so no central point of failure. Yes, Erik Voorhees bought a house via Liquity. This user bought land: <a href="https://youtu.be/iZaqTWccvC4" rel="noopener noreferrer nofollow">https://youtu.be/iZaqTWccvC4</a>. One more 🙂 <a href="https://twitter.com/ashleighschap/status/1465416109293809669" rel="noopener noreferrer nofollow">https://twitter.com/ashleighschap/status/1465416109293809669</a>.
Q5. Can you share with us some future plans about Liquity?
Bojan: Yes, since Liquity is immutable it cannot be changed. But we are working on a new product, but this is still in development. Can’t say too much but it will be very important for DeFi in the future, it is trying to solve a big problem.
<h3 id="part-3-community-questions-5-questions">Part 3: Community Questions (5 questions)</h3>
<ol>
 <li>@amiich -What has Liquity Protocol accomplished to date and what are the current use cases of the LQTY token and LUSD?</li>
</ol>
Bojan: Great question.
A few numbers:
- Liquity generate $4.5+ billion in loans
- $31 million in fees for LQTY stakers
- Currently we have 1’100 open loans
There are many use cases, I already mentuoned the yield dune dash.
But then you can offramp LUSD to over 170 countries, so take out a loan and spend on whatever you need. We like this the most 🙂
2. @MukhtiarAhmed01- I read about Liquity and come to know you provide intrest free loans on Eth if that is the case I’m curious how do you make profit and how do you sustain the project and protocol in long term.
Bojan: There is no interest, but there is a 0.5% fee when you take the loan. So for a loan of $10’000 you pay $50. But 100% of those fes go to LQTY stakers. The team is fully financed via the investment rounds we did in 2020/21.
3. @mhmdyvsvf — How does the Liquity stability mechanism work, and what advantages does it offer over traditional stablecoins?
Bojan: Check this tweet, it was the fastest stable to repeg last month: <a href="https://twitter.com/bjnpck/status/1637406787031777280" rel="noopener noreferrer nofollow">https://twitter.com/bjnpck/status/1637406787031777280</a>. Apart from that it is the most resilient, no authorities can shut it down and it is backed only by ETH. No USD, other stablecoins or banks involved.
4. @Yonom2021 — Can you explain in more detail how the Liquity staking works and what benefits stakers can expect in terms of earning fees and rewards?
Bojan:
<img src="https://cdn-images-1.medium.com/max/1000/0*D1_lYzHKB0qYVdTh">
You can stake LUSD and LQTY. LUSD you earn LQTY emissions and you earn ETH from liquidations. Like Tetranode. With LQTY you earn a portion of the protocol fees. As mentioned before all fees go to stakers. Those are paid out in LUSD and ETH. So no shitcoins or dilution. Just real yield.
5. @goklasmiracle — I saw on Liquity website always talk about Liquity Frontend, what’s it all about? can you explain?
Bojan: Correct, there are many frontends. This was done to be more decentralized, and different FE’s offer different benefits. Also, if one of them goes down, just connect to another one.
<h3 id="part-4-qa">Part 4:&nbsp;Q&amp;A</h3>
15 USDT Perpetual Bonus for each winner, with a total 10 winners
<ol>
 <li>Liquity is a ____ project&nbsp;?</li>
</ol>
a. DeFi
b. Layer 1
c. GameFi
d. NFT
2. What can people do in the Liquity ecosystem?
a. Play 2 Earn
b. Borrowing against ETH
c. Buy BTC
3. Liquity has a stablecoin called __.
a. USDT
b. LUSD
c. USDL
4. Which statement describes most accurately about Liquity?
a. People can’t stake LQTY
b. Liquity is a NFT project
c. People can borrow money by using Liquity
5. Where can people buy $LQTY?
a. KFC
b. BYDFi
c. McDonald
<h3 id="part-5-closing">Part 5:&nbsp;Closing</h3>
Levi BYDFi: I hope you guys learn more about Liquity and how it can help you in the crypto world. @bjnpck thank again for your time. We learned a lot!
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BYDFi x Liquity AMA Recap (2023/04/20)

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