Jul 5, 2022
4 min read
Can Liquity USD (LUSD) make money from decentralized borrowing?
Liquity USD (LUSD) is a stablecoin that serves as a payment mechanism for the Liquity decentralized borrowing platform.
Liquity makes 0% loans and uses Ethereum (ETH) as collateral for the loans. Interestingly, they claim Liquity can secure loans with a 110% with a minimum collateral ratio of 110%. They secure the Liquity loans with a Stability Pool that contains LUSD.
