Q&A with Liquity

Region: Europe
Jan 30, 2024, 8:37:52 AM Published By Wirex Team

We recently announced integration with Liquity, a leading decentralised borrowing protocol. To give you the inside scoop, we caught up with Bojan Peček, the Head of Operations at Liquity.

In this Q&A, Bojan spills the beans on Liquity's risk mitigation strategies, their vision for the future, and how our integration is shaking up the crypto scene!

What is Liquity and what services do you offer?

Liquity is a decentralised borrowing protocol that offers 0% interest loans against ETH. It’s been live since April 2021 and issued over $4.5b in loans so far.

What are the benefits of holding LUSD?

LUSD is the most crypto-native and resilient stablecoin; it has no exposure to centralised parties and lives fully on-chain. Several entities have recognised it as one of the best-designed and most secure stables out there and it’s held in the treasuries of many DAO’s.

What risk mitigation strategies does Liquity employ to protect users?

First and foremost, all contracts are immutable, no changes can be made to them. As upgradeability is often a way in for hackers, this does not exist in Liquity. We have also completed several audits, and extensive modeling and have been around for almost 3 years with no incidents.

What makes Liquity different from other competitors?

We charge no interest on loans; in a high-rate environment, this is extraordinary. Other things are LUSD, the most crypto-native stablecoin, accepting only ETH as collateral, and adherence to the highest security standards.

How does Liquity navigate compliance challenges and ensure a transparent environment for its users?

By the nature of being an immutable protocol, it has always been and will continue to be the same. The protocol works on its own, it does not need any human interference and has managed to thrive in various extreme market scenarios since the launch 3 years ago.

What other benefits does the integration of Liquity and Wirex bring to the customers?

If you are an ETH believer, you can keep exposure to ETH while borrowing fresh funds via Liquity. You take out a loan, top up the Wirex card with LUSD and use this for expenses, while keeping your ETH stack intact. Many of our users bought cars, motorcycles and even houses this way, and many more use it for day-to-day expenses.

Where do you hope Liquity will be in the next year or so?

With our v2 launching in Q3, we believe that it will become the go-to place for borrowing against ETH or staked ETH. We see it as the endgame and final incorporation of CDP protocols.

3 fast facts about Liquity: