Liquity
The protocol behind [[lusd]] — minimal-governance, ETH-collateralised CDP issuance with a stability-pool liquidation model.
Liquity v1 issues LUSD against ETH at a 110% min collateral ratio. Liquity v2 (BOLD) extends to multi-collateral (LSTs) with user-set borrow rates. Both are immutable contracts with no protocol-level governance over critical parameters.
Related terms
- LUSDLiquity's minimally-governed CDP stablecoin, ETH-collateralised, with a 110% min ratio and a stability-pool liquidation mechanism.
- CDP (collateralised debt position)A user-opened debt position backed by crypto collateral — the issuance mechanism for DAI, LUSD, GHO, crvUSD.
- Over-collateralisationBacking debt with collateral worth more than the debt itself — the standard for permissionless CDP stablecoins.