Interest-free stablecoin liquidity at your fingertips
LiquityLoans allows you to borrow against your ETH coins and receive LUSD stablecoins. All based on the Liquity decentralized borrowing protocol.
Access an immutable loan contract directly on-chain. Nobody can alter the rules of the system in any way.
All Liquity Protocol assets are bound by the ERC-20 standard.
Built on the Ethereum Chain for fast and secure transactions.
Frequently Asked Questions
How do I get started?
You can view our tutorials for opening a trove, providing LUSD to the stability pool, and staking LQTY on our Liquity Tutorials page.
How do these loans have no interest?
Liquity loans are interest free, meaning you don’t pay any interest for as long as you have the loan. Where’s the catch? There’s a one time origination fee (typically 0.5%), but beyond that there is no need for fees, since Liquity is implemented completely programmatically with its own stablecoin (LUSD). These efficiencies translate to interest free loans for you!
How much ETH do I need for my Liquity loan?
Liquity offers one of the lowest collateralization ratios of only 110%. This means that for every $100 you want to borrow, you need to put a minimum $110 of Ethereum into the contract. In practice you will want to have a much higher collateralization ratio, since your ETH would get liquidated with the first drop of the ETH/USD exchange rate. The average collateralization ratio on Liquity is around 200%. This would allow the price of ETH to drop 45% before it is liquidated.
Is my Ethereum safe with Liquity?
Aside from liquidation risk, which you can counteract by raising your collateralization ratio, there are risks that affect virtually all DeFi projects, such as smart contract risks, oracle attacks, severe economic attacks, and governance attacks. If you are concerned about these risks, we recommend you purchase insurance through a provider such as Nexus Mutual.
How are you affiliated with Liquity?
In order to decentralize the Liquity ecosystem, all frontends are run independently from the Liquity parent organization. This way no single entity controls the keys to the ecosystem. To cover the costs of operating the website, frontend providers, such as LiquityLoans.com, receives a portion of LQTY rewards that are paid to users who deposit LUSD to the Stability Pool. You can access our Liquity frontend at https://app.liquityloans.com/.
Where can I learn more about Liquity?
You can learn more about Liquity at Liquity.org.
So how do I get started?
Click this button to access the Liquity frontend: