This weekend's turmoil around USDC has shown us how important it would be to have a fully decentralised stablecoin and one that is completely verifiably backed by highest quality collateral.
We're lucky to already have one such candidate in the ecosystem. The stablecoin that seemed to be the least affected by the quickly spreading contagion was LUSD, a stablecoin issued by the Liquity protocol and backed fully (and solely) by ETH.
While LUSD did temporarily succumb to the market pressure this weekend, it slid off its designed peg the least and quickly returned to 1.00, thanks to the LUSD redemptions mechanism which allows for arbitrage whenever the it falls below $1.00, something that you can read more about here in their docs.
In terms of the protocol itself, Liquity went live in April 2021, with the DeFi Saver integration following shortly after in June. Since then we have provided a number of unique tools for the Liquity ecosystem:
- Creating instantly leveraged Troves
- Unwinding or self-liquidating Troves in one transaction
- Moving existing positions to Liquity through the use of our Loan Shifter
- Automated stop loss, take profit and trailing stop options
- LUSD bonds support (Chicken Bonds)
(with automation options that tie Liquity and Chicken Bonds together)
- Liquity Troves explorer (https://liquity.defiexplore.com/)
On top of all this, we recently ran a promo with the Liquity team (for which winners have just been announced!) and today we're super happy to announce yet another one!
$LQTY incentives for shifted & leveraged Troves
In order to make the decision to switch over to Liquity easier for more users, the Liquity team decided to award 2,500 LQTY tokens to a total of 15 lucky winners!
- 1,500 LQTY for 5 random accounts creating Troves with over 20k LUSD
- 1,000 LQTY for 10 random accounts creating Troves with under 20k LUSD
Eligible accounts are those that:
- Shift an existing position from Maker to Liquity, or
- Shift an existing position from Aave (v2 or v3) to Liquity, or
- Shift an existing position from Compound (v2 or v3) to Liquity, or
- Shift an existing position from Reflexer to Liquity, or
- Create an instantly leveraged Trove using DeFi Saver,
- with the created Trove(s) having a minimum 10k LUSD debt for eligibility.
All accounts making these actions between March 16 and April 16 will be eligible, with winners picked randomly - however, please note that the Liquity team highlighted that US residents are not allowed to participate in this promo. We recommend checking out their twitter thread for more details.
ℹ️If you'd like to double check whether your planned action(s) would be eligible, please feel free to reach out in our discord.