Liquity V2 is coming — what you need to know

Liquity announced V2 of its protocol that leverages staked ETH as collateral for interest-free loans.

Liquity, the decentralized lending platform where users can take 0% interest free loan on ETH, has recently announced the forthcoming launch of Liquity V2, bringing exciting new leverage and lending products to Ethereum holders.

Scheduled for release in 2024, this upgraded version introduces a unique reserve-backed stablecoin model that utilizes staked ETH.

With its interest-free borrowing feature and lower collateral ratio requirements, Liquity stands out as an appealing choice for users seeking efficient and accessible lending solutions.

This eagerly anticipated update builds upon the existing protocol, expanding its capabilities and improving user experience.

A highlight of Liquity V2 is its innovative reserve-backed stablecoin model, which leverages staked ETH. It is also the only stablecoin in DeFi that does not compromise on decentralization.

This new approach enhances stability and ensures the robustness of the protocol. Users will benefit from the opportunity to borrow LUSD and take advantage of its pegged value to the US dollar, by locking their staked ETH with a minimum collateral ratio of 110%.

As Liquity prepares for the launch of V2, it continues to gain momentum, positioning itself as a leading decentralized lending solution within the blockchain landscape.

Originally published at https://www.stakingbits.com on July 16, 2023.