The original token of the Liquity protocol, LQTY, has increased by 108.36% after its announcement of listing by the crypto giant, Binance.
The decentralized lending protocol primarily allows users to borrow loans with 0% interest against Ethereum used as collateral. The stablecoin LUSD, which is pegged to the US dollar, is used to repay loans and only needs to maintain a minimum collateralization ratio of 110%.
Binance announced the listing of LQTY in the Innovation Zone with two trading pairs, LQTY/BTC and LQTY/USDT. Trading will commence on February 28th, and withdrawals will open on March 1st. Additionally, LQTY is also added as a borrowable asset in isolated margin accounts.
The Innovation Zone is essentially a dedicated trading zone that enables users to trade new tokens that are likely to have higher volatility and may pose a greater risk than other tokens.
Following the listing, LQTY has increased by over 30%. According to the latest statistics on DefiLlama, the total value locked (TVL) in the protocol is over $600 million. While this represents a significant drop from its peak of $4.52 billion during the 2021 bull run, the TVL number is still up 50% since the beginning of this year.
Liquity (LQTY) What is it?
Liquity (LQTY) is a decentralized finance (DeFi) platform that aims to provide solutions to current DeFi finance issues such as high fees and price instability by offering a protocol that allows for stable borrowing and lending of digital currencies.
The Liquity platform is based on a collateral-backed stability model, where the platform's own digital currency LUSD is used as a stablecoin that is pegged to the current value of the US dollar. To maintain the stable value of the currency, a certain percentage of LQTY is held as collateral, and this currency is used as a guarantee to obtain loans and execute transactions.
The Liquity platform is powered by artificial intelligence and smart contracts, providing high speed and efficiency in executing processes, and allowing users to access decentralized finance at low costs without the need for traditional financial intermediaries.