A decentralized Ethereum (ETH)-based lending protocol is leading the altcoin markets with explosive gains following surprise support from Binance, the world’s largest crypto trading platform by volume.
In an announcement yesterday, Binance revealed it would be listing Liquity (LQTY) in its “Innovation Zone”, where newer tokens with higher volatility are designated.
Liquity is a borrowing and lending protocol powered by its stablecoin LUSD, and uses ETH as collateral. LQTY, its native token, can be used for liquidity mining and staking.
LQTY stakers can earn LUSD from fees on loan issuance, and ETH on redemptions.
According to the Liquity website, censorship resistance is also a major priority for the project.
“Liquity was deployed as a complete system, set to run autonomously without human intervention. No one can change or upgrade the contracts and no one has special access.
Liquity is a protocol rather than a platform. There is no administrator with special privileges that could interfere with, alter, or halt the operation of the protocol in any way.
Frontend operation is provided exclusively by third parties which makes the system decentralized and resistant to censorship.”
Liquity has a circulating supply of 90,994,355, currently trading at $2.06 with a market cap of $186 million.
Following the listing from Binance, LQTY skyrocketed from $1.19 to a high of $2.86, a 140% rally before retracing.
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Featured Image: Shutterstock/Tithi Luadthong/Natalia Siiatovskaia
Source: https://dailyhodl.com/2023/03/01/decentralized-lending-protocol-on-ethereum-explodes-140-after-surprise-support-from-binance/