How to use Liquity: Tutorials

Create a New Ethereum Loan on Liquity

  1. In order to open at trove you need to access the Liquity frontend. If you are new to Liquity, you will see the following dashboard:
Liquity front-end dashboard
  1. Ensure you have the correct wallet and network selected in your browser wallet.
  2. Look for the box called “Trove”.

  3. Click “Open Trove”.
  4. Enter how much ETH you want to add to the Trove, or click “max” to add all ETH in your wallet.


  5. Enter how much LUSD you want to borrow. The minimum loan amount is $2,000 LUSD. The minimum collateral ratio is 110%. This means that if you add 110 ETH to the trove, the most LUSD you can borrow is the USD value of 100 ETH. If ETH is trading at $3,000 USD when you open the trove, the most you would be able to borrow against your 110 ETH is $300,000 LUSD.

  6. Ensure you account for drops in ETH’s value against USD when you choose how much LUSD to borrow from Liquity. If ETH’s value goes down and the collateral ratio of your trove drops below 110%, your ETH will be liquidated to cover the loan. Therefore many borrowers chose a collateral ratio over 200%, which allows ETH’s value to drop by almost 50% before their trove gets liquidated. You can see the average collateral ratio of all troves in Liquity by looking up the “Total Collateral Ratio” in the “Liquity Statistics” box.

  7. You will see that the $200 Liquidation Reserve and 0.5% Borrowing Fee are added to your borrowed amount. The sum of all these values is shown in the Total Debt field. 

  8. The liquidation reserve is used to cover gas fees in case your trove is liquidated and any remaining ETH needs to be returned to your wallet.

  9. The borrowing fee is a one-time fee that you need to pay when opening the trove. There are no ongoing fees, since the loan is interest free.

  10. Once you are happy with your selections, click “Confirm” to initiate the transaction.

  11. Continue with your wallet to sign the transaction.

  12. Your ETH will be deducted from your wallet and LUSD will be deposited.

  13. You can now exchange your LUSD on Curve.fi to other stablecoins.

Provide LUSD to the Stability Pool

  1. If you have received LUSD and want to earn LQTY instead of swapping it for another coin, you can do so from within Liquity. You can see the current APR inside of the “Stability Pool” box. You will also receive a portion of any ETH that is liquidated.

  2. Find the box named “Stability Pool”.
  3. Click the “Deposit” button.

  4. Choose how much LUSD you want to deposit into the stability pool.
  5. Once you are happy with your selection, click “Confirm” to initiate the transaction.

  6. Continue with your wallet to sign the transaction.

  7. Your LUSD will be deducted from your wallet.

  8. You will start accumulating ETH and LQTY, which you can claim at any time using the “Claim ETH and LQTY” and “Claim LQTY and move ETH to Trove” buttons.

  9. You can modify how much LUSD you are keeping in the pool by clicking the “Adjust” button.

Stake LQTY for Additional Gains

  1. If you deposited LUSD into the stability pool, you will receive LQTY tokens as a reward. You can stake the LQTY tokens for further ETH and LUSD rewards.

  2. Find the box named “Staking”.

  3. Click the “Start staking” button.

  4. Choose how much LQTY you want to stake.

  5. Hit “Confirm”.

  6. Continue with your wallet to sign the transaction.

  7. Your LQTY will be deducted from your wallet.

  8. You will start accumulating ETH and LUSD.

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