According to Dune Analytics, the team behind Liquity Protocol – the DeFi project launched on April 5 – has raised a fixed cost of $ 1 billion.
Supported by Pantera Capital Liquity, a Switzerland-based decentralized, non-management lending protocol that offers interest-free Ethereum loans locked as collateral and users must maintain a minimum security of 110%.
Loans are issued in a mathematically stable LUSD currency, which correlates to the value of the US dollar in a 1: 1 ratio. The protocol generates LUSD automatically to satisfy the user’s request, so far 480 million stablecoins have been disbursed. Every day more coins are marked than they are burned.
The loans are secured through a protocol stabilization pool that acts as a source of liquidity to repay debt repaid, and by other borrowers who act collectively as collateral. Users can earn money through protocol by depositing cash and income from issuance fees in LUSD and redemption fees into ETH.
Giant 10-day race data released via DuneAnalytics showed that loan demand has rewarded players so far with an average of about $ 240,000 in commissions per day on protocol between April 12-14. April 15th and most users remain within the 150-250% safe range.
On March 29, Cointelegraph reported that Liquity Protocol had completed its Series A financing round led by Pantera Capital with a $ 6 million investment that included additional contributions from companies such as quantitative investment firm Alameda Research.
The decentralized financial protocols sector continues to climb steadily, with data aggregator DeFi Llama showing that the total closed value of DeFi protocols so far is $ 123.33 billion. In its short life, Liquity Protocol climbed to number 26 out of the Top 100 DeFi Protocols, with a value of $ 1.06 billion at TVL.