Liquity secures $2.4M in seed funding to further develop lending protocol

advertisement

Ethereum-based lending protocol Liquity has raised $2.4 million in seed funding in a round led by cryptocurrency investment firm Polychain Capital, according to a company announcement. 

The seed funding, which included investments from a_capital, Lemniscap and 1kx, will be used to support further development of the protocol as well as to grow the company team. 

Liquity was designed by CEO Robert Lauko, who is a former blockchain researcher at decentralized cloud-computing company Dfinity. The protocol aims to transform the stablecoin lending market by creating an algorithmic "up-front fee" that is initially set at zero and goes back to zero every time the price of LUSD (the native stablecoin) is pegged to the USD. 

Substantial overcollateralization has been an issue in DeFi since its inception," Lauko said in the announcement. "Reducing the collateral requirements while offering loans at minimal and predictable costs will make stablecoin lending more attractive than ever before.”

Trending Stories

Get Your Crypto
Daily Brief

Delivered daily, straight to your inbox.

Will Sanctions Drive Russia into the Arms of Cryptocurrencies?

From the removal of many Russian banks from SWIFT to a seemingly constant flow of new sanctions, Russia’s invasion of Ukraine has left many to wonder: Is the country likely to lurch towards cryptocurrencies? And if so, what does this mean for businesses that are holding and/or using crypto? Crypto and sanctions evasion Although crypto […]
Read Full Story
Sponsored Post

Layer-2 Scaling Solutions: A Framework for Comparison - Commissioned by Polygon

Ethereum had a breakout year in 2021. It’s native asset, ETH’s, market capitalization surpassed $500 billion for the first time. Its network facilitated upwards of $7 trillion value transfer. Non-fungible tokens (NFTs) emerged as another “killer application” that have put its technology on the global stage and caught the attention of the masses.
Read Full Story
May 5, 2022, 3:17PM UTC
More