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76548
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2021-04-16

1 billion in 10 days

The team behind Liquity Protocol - a DeFi project launched on April 5 - has attracted $1 billion in closed value, according to data from Dune Analytics.

Pantera Capital-backed Liquity Protocol is a decentralized and governance-free lending protocol based in1 billion in 10 ni Switzerland that offers interest-free loans against Ethereum pledges, and users must maintain a minimum collateral ratio of 110%.

 

Loans are disbursed using the protocol's algorithmic stablecoin LUSD, which is pegged to the value of USD on a one-to-one basis. The protocol automatically generates LUSD to meet user demand and to date has minted a supply of 480 million stable coins, with more coins being minted than piled each day.

 

Loans are backed by the protocol's stability pool, which acts as a source of liquidity to repay liquidated debt, as well as co-borrowers acting collectively as guarantors of last resort. Users can make money through the protocol by betting on liquidity and earn issuance fees in LUSD and redemption fees in ETH.

 

Data from a giant 10-day run published via DuneAnalytics revealed that lending demand has rewarded stakers so far, with an average of around $240,000 in fees generated per day on the protocol between April 12 and April 14. April 15, with most users maintaining collateral in the 150-250% range.