After the launch of the improved contract, users can withdraw their LUSD—the protocol’s USD-pegged stablecoin—from the old contract and redeposit it into the new one for faster rebalancing. As a result, Liquity rose sharply, gaining 36% in value today.
This article explains what Liquity is, considers whether it might be a worthwhile investment, and lists top places to buy Liquity if you decide to invest.
Top places to buy Liquity now
What is Liquity?
Liquity is a decentralized lending protocol built on Ethereum. ETH holders can take out loans in the form of LUSD, a USD-pegged stablecoin, with fees set algorithmically for issuance and redemption.
Liquity charges a one-time borrowing fee determined as a fixed percentage of the amount borrowed. This fee can be as low as 0.5%.
Borrowers can obtain LUSD interest-free by using ETH as collateral, allowing them to access ETH-backed loans without recurring interest costs.
One distinct advantage Liquity has over many other decentralized lending platforms is the absence of a variable interest rate during the loan period. Variable rates can change unpredictably, while Liquity’s model avoids that volatility in borrowing costs.
Should I buy Liquity today?
Liquity could be an attractive investment for some investors, but you should review multiple price forecasts from reputable analysts and perform your own market research before committing funds. Treat any investment advice cautiously and consider your risk tolerance and time horizon.
Liquity price forecast
Tech News Leader projects that Liquity’s price could nearly double over the next year, rising from $3.19 today to $6.09. Their longer-term forecast estimates a value of $18.49 in five years and $116.32 in ten years. Remember that price predictions vary widely and are not guarantees.
Liquity on social media
The improved @LiquityProtocol B.AMM contract is LIVE!
Users can withdraw their LUSD from the old contract and re-deposit it into the new one for faster rebalancing.
Read our analysis of the last $6m liquidations and the way we improved the Backstop AMM🧐👇https://t.co/rASn4eJTbX— B.Protocol (⊟→⊞) (@bprotocoleth) February 3, 2022