LQTY and LUSD on MYSO

We’re thrilled to announce the integration of LQTY and LUSD on MYSO, bringing unique p2p loans to Liquity users!

Dive into the MYSO dApp to explore new opportunities in DeFi borrowing and lending:

• As a borrower on MYSO, you can enjoy liquidation-free loans with fixed APRs. Invite fellow Liquity members to create fully customizable loan offers for you.
• As a lender, you can create loan offers, leveraging your market expertise and community connections to earn attractive yields in underserved markets. Craft exclusive loan offers for your Liquity community friends.

MYSO’s missions is to democratize loan facilities for projects like Liquity, overcoming the restrictions imposed by traditional lending gatekeepers.

Learn more how LQTY and LUSD holders can harness MYSO v2 and take advantage of new borrowing and lending opportunities.

LQTY Holders: Unlock the Borrowing Power of Your Tokens

If you’re holding $LQTY tokens, you can now tap into the borrowing power of your tokens without the overhead of monitoring liquidation thresholds, or changing APRs. Can’t find a compelling loan offer? Ask your Liquity friends to create one just for you (see the next section below) or use our Telegram bot to ask in the MYSO network.

Here’s what you stand to gain by borrowing through MYSO:

• Simplicity: Once your loan is initiated, the terms are fixed and transparent. No unpredictable changes like unexpected interest rate fluctuations.
• No Liquidation Risk: Say goodbye to the constant fear of unexpected liquidations that might jeopardize your collateral.
• Oracle Independence: Take out loans that are untouched by the intricacies and failures of external price feeds, providing greater peace of mind.

Once you’ve borrowed $LUSD stables, you’re free to utilize them in any way you like. And then once you’re ready to settle, simply repay the loan amount to regain your precious $LQTY.

LUSD Holders: Create Loans for the Liquity Community

With MYSO, your favorite stablecoin has found a new way to be used and earn yield! Unlike passive lending platforms, MYSO allows you to actively take control over the loans you underwrite, enabling you to proactively create highly customizable loan offers according to your own risk reward profile. You can post public loan offers available to everyone or provide offers on a bespoke basis, accessible only to your Liquity friends. The choice is yours.

By lending out to $LQTY holders, you can:

• Earn Attractive Yields: Be creative and leverage your market insights to craft attractive and unique loan offers, allowing you to go after underserved borrowing needs and earn attractive yields.
• Contribute to the Liquity Ecosystem: Encourage the use of $LQTY as collateral by engaging with $LQTY holders and offering them loan options they didn’t have before.
• Leverage Your Network: Engage with fellow Liquity friends and ideate mutually beneficial loan options that boost the utility of both $LUSD and $LQTY.

Most importantly, lend $LUSD like you want. Your assets, your terms.

Tools To Help Structure Your Loans

At MYSO, we’re not just building a protocol — we’re creating an ecosystem that equips you with tools to make informed lending decisions.

Loan Risk Tool: You can use our historical backtesting tool to better understand the risks associated with underwriting $LQTY collateralized loans at different LTVs and tenors. Obviously, longer tenor and higher LTV loans are more risky than shorter tenor and lower LTV ones. Depending on your risk threshold, you can use the tool to identify combinations that align with your individual risk tolerance.

For example, for risk-averse lenders, our tool reveals that a loan at 30% LTV for up to 120 days this year would have registered a 90th percentile worst-case loss of roughly 3%.

Loan Pricing Tool: Once you’ve found a LTV and tenor combination that is in line with your risk appetite, you can use our loan pricing tool to derive reasonable lending rates. Grounded in option theory, the tool uses the Black-Scholes model to derive an interest rate that is rational and fair in risk-adjusted terms. This rate can be a starting point for quoting to borrowers, ensuring you’re fairly compensated for taking on default risk.

For instance, with a 100% p.a. implied volatility for $LQTY/$LUSD, a 30% LTV loan for 120 days could justify asking for approximately 6.6% APR. Alternatively, consider charging an upfront fee in $LQTY, perhaps around 60 basis points (0.60%).

MYSO’s Vision: Simple, Effective P2P Loans For Everyone

We’re eager to unlock the potential of underappreciated collateral tokens like $LQTY and enable mutually beneficial collaborations within the Liquity ecosystem! Whether you’re a borrower or a lender, MYSO is here to help.

Get started on the MYSO dApp here — https://app.myso.finance/