{"id":179715,"date":"2023-10-24T03:00:19","date_gmt":"2023-10-23T21:30:19","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=179715"},"modified":"2023-10-24T03:00:19","modified_gmt":"2023-10-23T21:30:19","slug":"liquity-token-rallies-75-as-fees-spike-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/liquity-token-rallies-75-as-fees-spike-crypto-news\/","title":{"rendered":"Liquity Token Rallies 75% As Fees Spike &#8211; Crypto News"},"content":{"rendered":"<p><\/p>\n<p>DeFi Traders Have Been Borrowing LUSD and Swapping For DAI To Capture Yield Differential<\/p>\n<div>\n<p>Liquity, a decentralized lending protocol, has seen its utility token, LQTY, surge by over 75% in the past 30 days despite a sluggish market, which can be largely attributed to an arbitrage opportunity stemming from MakerDAO&#8217;s DAI Savings Rate (DSR).<\/p>\n<p><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.coingecko.com\/en\/coins\/liquity\" class=\"no-underline\"><\/p>\n<figure><figcaption class=\"text-center text-xs\">LQTY Price<\/figcaption><\/figure>\n<p><\/a><\/p>\n<p>MakerDAO offers a 5% APR on DAI deposits. Traders have been taking advantage of this by minting Liquity&#8217;s LUSD stablecoin against ETH by paying a one-time borrowing fee of 0.5% and subsequently selling LUSD for DAI, which is then deposited into the DSR module.<\/p>\n<p>As traders sell LUSD, pushing it below its $1 peg, arbitrage bots step in to purchase the discounted LUSD and use it to redeem $1 worth of ETH from the Liquity protocol. This maintains LUSD&#8217;s dollar peg.<\/p>\n<p><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/metamask.io\/portfolio\/?utm_source=defiant&amp;utm_medium=display&amp;utm_campaign=MM_pDapp_Defiant_ROS&amp;utm_content=MM_pDapp_Defiant_728x90_Bridge\" class=\"h-[58px] noprose mx-auto mb-8 mt-6 block w-[320px] overflow-hidden lg:hidden\"><img loading=\"lazy\" decoding=\"async\" src=\"image\/png;base64,iVBORw0KGgoAAAANSUhEUgAAABQAAAACCAYAAABYBvyLAAAACXBIWXMAAAsTAAALEwEAmpwYAAAAmUlEQVQImR3MOwuCUABAYf8\/uEXRg8JKJ8eGMCx6LUUpgfkoSkWre4OSHjSewOEM33KUdzdCtnZc6g7XhsOt4ZZ+tD0+vSMfIyTUx4x0g1G\/wrynEtgmItqQZiF+FhHkB2KRIu4S5aWF5SyprsrS2pq8vuXR2fPTT0jDZ6JZmB2NQVNl2VLJFzaFSPCkjxXPGJ6nuHLP81vwBzovhgs+2ZvsAAAAAElFTkSuQmCC\" alt=\"leaderboard\" class=\"!m-0 !bg-cover\" width=\"970\" height=\"100\" \/><\/a><\/p>\n<p>Over the past month, more than $625,000 has been distributed to LQTY stakers, who receive all the borrowing and redemption fees generated by the protocol, a Liquity spokesperson told The Defiant.<\/p>\n<p>In its upcoming V2 iteration, Liquity aims to scale up in a bid to solve the stablecoin trilemma \u2013 combining stability, capital efficiency, and decentralization.<\/p>\n<p>The team plans to introduce two new <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.liquity.org\/blog\/introducing-liquity-v2\">features<\/a> \u2013 principal protection and a secondary market. Principal protection allows users to hedge their risk during market volatility by paying a premium for opening hedging positions, which can be sold for the principal amount. <\/p>\n<p>The secondary market enables users to buy and sell their hedging positions, reducing the risk of a bank run on the system. If a position remains unsold within a specified timeframe, the protocol utilizes the collected premium to subsidize and attract potential buyers.<\/p>\n<p>Liquity V2 is expected to launch in Q2 2024.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>DeFi Traders Have Been Borrowing LUSD and Swapping For DAI To Capture Yield Differential Liquity, a decentralized lending protocol, has seen its utility token, LQTY, surge by over 75% in the past 30 days despite a sluggish market, which can be largely attributed to an arbitrage opportunity stemming from MakerDAO&#8217;s DAI Savings Rate (DSR). LQTY [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":179716,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[274,273,272,244,266,271,268,270,269,267],"class_list":["post-179715","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-de-fi","tag-crypto-finance","tag-decentralized-finance","tag-liquidity","tag-metamask","tag-pancake","tag-slippage","tag-sushiswap","tag-tronlink","tag-trust-wallet","tag-uniswap"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/179715","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=179715"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/179715\/revisions"}],"predecessor-version":[{"id":179722,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/179715\/revisions\/179722"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/179716"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=179715"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=179715"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=179715"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}