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Liquity is a decentralized borrowing protocol that allows users to draw interest-free loans against Ether as collateral. It uses a unique system of stability pools and redemption mechanisms to maintain its stablecoin LUSD at a peg to the US dollar. The protocol is non-custodial and permissionless, enabling users to access liquidity without intermediaries.
Key features of Liquity include zero interest rates, high capital efficiency, and decentralized governance. Users can borrow LUSD by opening Troves, which are collateralized debt positions. The system ensures stability through algorithmic adjustments and community-driven incentives, making it a robust solution for decentralized finance. |
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