LiqwidX is a noncustodial DeFi liquidity protocol for borrowing that allows users to originate 0% interest loans against ADA deposited into individual vaults as collateral. New loans trigger the minting of LQUSD; a USD pegged stablecoin and are required to maintain a minimum collateral ratio of 110%. Beyond the collateral requirements, the loans originated in the protocol are backed by a Stability Pool of staked LQUSD and by other LQUSD borrowers in aggregate serving as liquidators. The LiqwidX protocol is decentralized and immutable with users directly interacting with the contract functions (e.g. minting LQUSD) onchain.
LiqwidX offers the most capital efficient borrowing conditions for Cardano users with key protocol benefits
- 0% interest rate loan
- A minimum collateral ratio of only 110%
- The community of LQX holders govern the LiqwidX protocol, the smart contracts that power LQUSD
- LQUSD can be redeemed at face value for the ADA collateral during normal conditions
- Users interact directly with protocol functions onchain, once deployed on mainnet the LiqwidX v1 smart contracts are not controlled by anyone
Three different ways to generate revenue using LiqwidX
- Deposit staked ADA in the Vault to earn Cardano staking rewards with your pool of choice
- Stake LQUSD in the Stability Pool and earn liquidation profits in addition to LQX rewards
- Stake LQX and earn a share of the protocol revenue from issuance fees (in LQUSD) and redemption fees (in ADA).
LiqwidX DAO Token LQX is the protocol’s native asset used for governance and one way to earn LQX directly within the protocol is by staking LQUSD in the Stability Pool. 65% of the total LQX supply will be distributed to LQUSD stakers over a three year period starting at mainnet launch.