Market Cap
$48,892,434.3
Fully Diluted Valuation
$48,892,434.3
24 Hour Trading Vol
$36,355.0
Circulating Supply
49,240,011.2
Total Supply
49,240,011.2
Max Supply
∞
Liquity USD Price
$0.993
24h Range
$0.979 - $1.00
Percent Change 1h
0.34%
Percent Change 24h
-0.46%
Percent Change 7d
-0.59%
All-time high
$1.16
All-time low
$0.897
1D
7D
1M
1Y
All
Liquity USD (LUSD) is a decentralized stablecoin protocol built on the Ethereum blockchain that allows users to borrow a stablecoin against their Ether (ETH) collateral. LUSD is unique in that it maintains its peg to the US Dollar (USD) through a mechanism that incentivizes arbitrage, ensuring that the value of LUSD remains close to $1. Unlike other stablecoins that may rely on centralized reserves, Liquity operates without a centralized custodian, making it a truly decentralized option for users seeking stability in the volatile cryptocurrency market.
Liquity was founded by Robert Leshner, who is also known for his role as the CEO of Compound Finance, and other contributors from the Ethereum community. The project aims to create a robust and decentralized stablecoin system, leveraging innovative mechanisms to provide users with a high degree of autonomy and security in managing their assets.
Liquity operates on a system of collateralized borrowing. Users deposit ETH as collateral and can borrow LUSD against it at a minimum collateralization ratio of 110%. This means for every $100 worth of LUSD, a user must provide at least $110 worth of ETH. The unique feature of Liquity is its "redemption" mechanism, which allows users to redeem LUSD directly for ETH at a guaranteed price, maintaining the peg of LUSD through market incentives.
The protocol also employs a governance-free model, meaning there is no centralized authority controlling the system. Instead, it uses a fee structure where users pay a one-time borrowing fee in LUSD to incentivize stability and maintain the liquidity of the system. Additionally, Liquity employs a "stability pool" that acts as a backstop for the system, absorbing liquidation risks and helping to keep the peg in check.
1. Decentralized Finance (DeFi): LUSD serves as a stable asset in various DeFi applications, allowing users to engage in yield farming, lending, and liquidity provision without the volatility associated with other cryptocurrencies.
2. Collateralized Loans: Users can leverage their ETH holdings to obtain LUSD, allowing them to access liquidity without selling their assets, which is particularly beneficial in a bullish market.
3. Hedging Against Volatility: Traders can use LUSD to hedge their positions in the crypto market, providing a stable alternative to fiat currencies and other cryptocurrencies that may experience price fluctuations.
4. Cross-Chain Transactions: With the growth of cross-chain capabilities, LUSD can be used across various blockchain ecosystems, facilitating seamless transactions and exchanges between different assets.
To ensure the safety of your Liquity USD holdings, consider the following practices:
1. Secure Wallets: Store your LUSD in hardware wallets or secure software wallets that provide robust security features. Avoid keeping large amounts on exchanges.
2. Enable Two-Factor Authentication (2FA): Always activate 2FA on your accounts to add an extra layer of protection against unauthorized access.
3. Regular Updates: Keep your wallets and software up to date to protect against vulnerabilities and exploits.
4. Be Cautious with Smart Contracts: When interacting with DeFi platforms, ensure you are using well-audited and reputable smart contracts to minimize the risk of hacks or scams.
5. Stay Informed: Keep up to date with the latest developments in the Liquity ecosystem and the overall crypto market to make informed decisions about your investments.
Investing in Liquity USD (LUSD) or any other cryptocurrency involves several steps:
1. Choose a Reliable Exchange: Select a reputable cryptocurrency exchange platform like Coinbase, Binance, or Okx. These platforms allow you to buy, sell, and trade cryptocurrencies.
2. Create an Account: Sign up for an account on your chosen exchange by providing the necessary personal information and completing the verification process.
3. Fund Your Account: Deposit funds into your exchange account using various methods like bank transfers, credit/debit cards, or wire transfers.
4. Buy Liquity USD: Once your account is funded, you can purchase Liquity USD directly from the exchange. Choose the desired amount and complete the transaction.
Botsfolio is a platform that automates cryptocurrency investments using trading bots. To invest in Liquity USD using Botsfolio, follow these steps:
Botsfolio allows you to automate your cryptocurrency investments, potentially saving time and effort while optimizing your trading strategies.
Liquity USD (LUSD) is currently trading at $0.993 and exhibits good potential for future growth. Check the latest Liquity USD (LUSD) price prediction.
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