What is Liquity (LQTY)?

LQTY is the secondary token of Liquity, a decentralized borrowing protocol that allows interest-free loans against Ether (ETH) as collateral. Anyone using Liquity only needs to pay a small, one-time fee instead of high variable interest rates. Liquidity lends loans in its USD-pegged stablecoin, LUSD, at a minimum collateral ratio of 110%. The platform ensures governance-free operations by leveraging algorithmic and fully automated protocol parameters and smart contracts

The LQTY token is used to handle fee revenue and incentivize early adopters, stability providers, and front-end operators. Users who contribute LUSD to the Liquity stability pools are the stability providers, and who facilitate these deposits by handling the front-end interface are the front-end operators.

LQTY has a capped maximum supply of 100,000,000 tokens, of which 95% is currently in circulation. Its holders can stake their LQTY holdings and earn LUSD (USD pegged stablecoin of Liquity) with other revenue rewards from the lending and redemption model of the Liquity protocol.

How Does LQTY work?

LQTY plays an integral role in the decentralized zero-interest loan borrowing model of the Liquity protocol. Liquity offers loans in LUSD against ETH at a minimum collateral ratio of 110% backed by a stability pool containing LUSD. Users deposit their LUSD in this stability pool to become stability providers. Over time, in proportion to the size of their deposit they receive LQTY tokens as reward. At any point in time, these stability providers can withdraw their pending rewards to their Ethereum address.

In addition to depositing LUSD in the stability pool, users can also earn LQTY by becoming the front-end operators of the Liquity. These front-end operators provide a web interface to the end-users to simplify their interaction with the Liquity protocol. In return, they get a share of LQTY generated by the users. Anyone can either install the front-end launch kit of the platform or integrate its protocol to become a front-end operator.

LQTY holders can also stake their holdings to earn a share of the one-time loan issuance and redemption fee charged by the Liquity protocol. Here, redemption is the process where users can exchange their LUSD in exchange for ETH at face value.

Since the entire process is algorithmic, the protocol itself readjusts its fee depending on the borrowing demand and redemption rate. For example, if the protocol witnesses lower borrowing, it will reduce the borrowing fee, encouraging borrowing.

Unlike similar systems, Liquidity works without any DAO or governing body to establish a fully decentralized lending ecosystem.

How to Buy Liquity (LQTY) in India?

There are many platforms where you can invest and Buy Liquity (LQTY) in India.

One such platform is Flitpay. To buy LQTY in INR, you have to sign up for the relevant application, where you will have to enter the required details and go through a small KYC verification process.

After the KYC approval, ensure you have correctly entered your bank details. Now, through the linked bank account, deposit the amount you want to buy LQTY and execute the purchase.

You can instantly convert your INR to LQTY and LQTY to INR and withdraw your INR through bank transfers whenever you want.

Flitpay also keeps introducing timely rewards for its users.

What to Do After I Buy Liquity (LQTY)?

LQTY can be used to buy other cryptocurrencies after converting them to INR through crypto exchange platforms like FLITPAY. You can also hold the LQTY till it reaches a high price, and then you can sell it through Flitpay's OTC order facility. Users can earn significant profits from buying it at a lower price and selling it at a higher price.

FAQs

What is Liquity (LQTY)?

LQTY is the secondary token of a zero-interest and decentralized lending platform, Liquity. Its holders can stake their LQTY holdings to earn the loan issuance and redemption fee collected by Liquity.

What is the Liquity (LQTY) price in India?

Check out the current INR price of LQTY crypto in India on Flitpay.

Which is the best crypto app in India to buy SUI?

Flitpay is the best cryptocurrency app in India to buy LQTY, buy bitcoin, or your favourite cryptocurrencies. Flitpay supports instant UPI and bank deposits and bank withdrawals with a minimum deposit and withdrawal limit of INR 100.

What are the benefits of the Liquity (LQTY)?

LQTY is an important part of a unique zero-interest borrowing system, Liquidity, that gives loans against ETH as collateral. Unlike systems that charge varying interest rates on loans, Liquidity charges a small one-time fee, making loan borrowing feasible for the end users. As a decentralized platform, it eliminates intermediary fees and other hassles commonly associated with traditional trading and borrowing platforms.

Is it safe to invest in LQTY in India?

Yes, investing and trading LQTY is Safe in India. Flitpay is one of India's most secure cryptocurrency exchanges for buying LQTY crypto. It offers real-time prices and advanced investing features.