Liquity logo
Liquity
LQTY
$1.68

Sector

Defi

Exchange Debut

2021-04-08

Market Cap

160,027,320

Maxim Supply

100,000,000

Circulating Supply

95,187,949

Circ. Supply(%)

95.19%
Liquity logo

Liquity

LQTY

Price

$1.68

Market Cap

Sector

Exchange Debut

160,027,320
2021-04-08

Volume 24h

High 24h

Low 24h

31916166
1.714935380046
1.626222890493

Change 24h

Change 7d

Change 30d

-1.4915
14.1293
30.3506

Maxim supply

Circulating supply

Circulating supply(%)

100,000,000
95,187,949
95.19%

The opinion of artificial intelligence (AI), based on the fundamental analysis of the Liquity – LQTY cryptocurrency:

 

Liquity, a decentralized borrowing protocol on Ethereum, offers the stablecoin LQTY, anchored to the USD. It enables Ether holders to obtain loans in LQTY, with fees adjusted by algorithms. The fundamental analysis of the Liquity – LQTY cryptocurrency reveals an overall score of 6.44 out of 10, reflecting varied strengths and areas for improvement across different criteria.

SOCIAL & MASS MEDIA: Score 5 out of 10

The project’s presence in the media is robust, scoring a high 9 out of 10, indicating significant media coverage. However, its performance in social media engagement is mixed. The community activity and the ability to attract followers on social media pages are relatively weak, both scoring 3 out of 10. The activities of social media administrators and the size of chat group communities are average, each scoring 5 out of 10.

AUDIT & SECURITY: Score 7.34 out of 10

Liquity’s audit and security aspect is relatively strong. The project’s audit results are commendable with a 7.7 out of 10, and liquidity on exchanges is robust at 8 out of 10. However, the transparency of information available to the public is moderate, scoring 5 out of 10.

TOKENOMICS: Score 7.05 out of 10

In terms of token economy, Liquity fares well, especially regarding its inflationary aspect, scoring 9 out of 10. However, the centralization of its monetary mass is a concern, reflected in a score of 6 out of 10.

ECOSYSTEM DEVELOPMENT: Score 5.8 out of 10

The ecosystem development of Liquity shows potential but is currently average. The project scores 5 out of 10 in achieving objectives and a slightly better 6 out of 10 in planning for new developments.

TEAM & DEVELOPERS: Score 5.68 out of 10

The experience of the Liquity team is notable, earning a 6.6 out of 10. However, the number of software developers is a significant limitation, scoring only 2 out of 10, which could impact the project’s future development.

PRODUCT & UTILITY: Score 7.86 out of 10

Liquity’s product and utility are strong aspects of the project. The utility of the product scores 7.1 out of 10, and the utility of tokens within the ecosystem is particularly high at 9 out of 10.

PARTNERS & INVESTORS: Score 6 out of 10

The project scores an average 6 out of 10 in this area. The quality of partners is commendable with a score of 7 out of 10, but the number and capacity of investors are moderate, scoring 5 out of 10.

Fundamental analysis of the Liquity – LQTY cryptocurrency – The final conclusion

Considering the fundamental analysis of the Liquity – LQTY cryptocurrency, the project shows a balanced profile with notable strengths in product utility, ecosystem tokenomics, and audit results. However, it faces challenges in social media engagement, developer resources, and investor capacity. The overall score of 6.44 suggests a project with potential but needing improvement in specific areas. Investors should weigh these factors, especially the lower scores in team and social media engagement, against the high utility and security scores. This balanced view is crucial for assessing both the risks and opportunities in investing in Liquity – LQTY.

What is Liquity – LQTY?

Liquity-LQTY: A Comprehensive Overview

Liquity-LQTY is a decentralized borrowing protocol, enabling users to obtain loans against their Ether tokens. Loans are distributed in LUSD tokens, a USD-pegged stablecoin. This stablecoin can be easily converted into traditional currency, ensuring users have consistent liquidity. An essential aspect of this system is the required minimum collateral ratio of 110%. After obtaining a loan, users can transfer their LUSD tokens to any Ethereum address.

The Role of Troves

Trove functions as an account within the Liquity system. It records both the Ether collateral and the corresponding debt in LUSD. Crucially, each Ethereum address can only have one Trove. Essentially, it tracks and maintains loans for users.

Stability Pool: Ensuring Solvency

The Stability Pool plays a pivotal role in ensuring the system remains solvent. It uses LUSD tokens to manage undercollateralized debt, making sure the LUSD supply is adequately backed up. This pool is funded by users, known as stability providers. Over time, these providers gain a share of liquidated collateral but may lose a share of their LUSD deposits.

Key Benefits of Liquity-LQTY

Liquity introduces several advantages, addressing prevalent issues in the crypto lending space. These benefits include offering interest-free liquidity, maintaining a low collateral ratio at 110%, and ensuring a hard price floor. Moreover, the platform operates using a governance-free algorithmic monetary policy, ensuring censorship resistance and providing growth incentives.

In the fundamental analysis of the Liquity-LQTY cryptocurrency, it becomes evident that the platform’s design aims to offer users a seamless, secure, and beneficial borrowing experience. By understanding its intricate features and benefits, potential users can make informed decisions regarding their cryptocurrency ventures.

Fundamental analysis of the Liquity-LQTY cryptocurrency

Liquity-LQTY performance

GENERAL CRITERIA:

Score

SOCIAL & MASS MEDIA
0
AUDIT & SECURITY
0
TOKENOMICS
0
ECOSYSTEM DEVELOPMENT
0
TEAM & DEVELOPERS
0
PRODUCT & UTILITY
0
PARTNERS & INVESTORS
0
Content description – Go to Metholodogy

Social & Mass Media In this section was taken into consideration the intensity of the activity of the social media page of the administrators , the speed of the community growth, the user interaction with the pages and as well the number of media appearances in the most important trade publications.

Audit & Security In particular, the team looks if the project is audited, how extensive the audit is,  at the bug bounty program, if it had incidents or not, at the liquidity on the exchanges and at the transparency of the information provided.

Tokenomics Under this criterion it is analyzed whether the project is inflationary or not, whether it has maximum supply, the percentage of supply released into the market at the time of the analysis, the rate of inflation per year, the distribution of supply in the portfolios as well as the vesting plan.

Ecosistem Development In this section is checked if the project has delivered on time what it proposed in the roadmap, the degree of participation in the project governance of the community, the activity and intensity of the developments published on github and what products or applications the team proposes to develop in the future.

Team & Developers It checks if the team is public, the quality of the team behind the project, the number of members on different domains, the experience in IT, finance and cryptography, the traceability of published information about team members and as well the number of developers in the project.

Product & Utility It checks if there are functional products, the number of users and the revenues generated by these products, the sustainability of the project and the usefulness offered in the cryptographic space and as well as in other fields of activity.

Partners & Investors It analyzes the partners and the degree of their involvement in the project, the capacity of investors and investment funds that can contribute substantially to the development of the ecosystem.

Go to Methodology

Content description

Social & Mass Media In this section was taken into consideration the intensity of the activity of the social media page of the administrators , the speed of the community growth, the user interaction with the pages and as well the number of media appearances in the most important trade publications.

Audit & Security In particular, the team looks if the project is audited, how extensive the audit is,  at the bug bounty program, if it had incidents or not, at the liquidity on the exchanges and at the transparency of the information provided.

Tokenomics Under this criterion it is analyzed whether the project is inflationary or not, whether it has maximum supply, the percentage of supply released into the market at the time of the analysis, the rate of inflation per year, the distribution of supply in the portfolios as well as the vesting plan.

Ecosistem Development In this section is checked if the project has delivered on time what it proposed in the roadmap, the degree of participation in the project governance of the community, the activity and intensity of the developments published on github and what products or applications the team proposes to develop in the future.

Team & Developers It checks if the team is public, the quality of the team behind the project, the number of members on different domains, the experience in IT, finance and cryptography, the traceability of published information about team members and as well the number of developers in the project.

Product & Utility It checks if there are functional products, the number of users and the revenues generated by these products, the sustainability of the project and the usefulness offered in the cryptographic space and as well as in other fields of activity.

Partners & Investors It analyzes the partners and the degree of their involvement in the project, the capacity of investors and investment funds that can contribute substantially to the development of the ecosystem.

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