Liquity (LQTY) Lending Rates Up to 0.5% APY

Find the best LQTY lending rates and earn up to 0.5% APY. Compare 2 platforms side-by-side.

Last updated: January 12, 2026|Advertising disclosure

Liquity Lending Guide

How to lend Liquity

Crypto lending guide

Platform	Coin	Interest rate
Kucoin	Liquity (LQTY)	Up to 0.5% APY

Platform

Coin

Interest rate

Kucoin

Liquity (LQTY)

Up to 0.5% APY

Frequently Asked Questions About Liquity (LQTY) Lending

What is Liquity (LQTY) and what is it used for?

Liquity is a decentralized stablecoin borrowing protocol built on Ethereum. Its native token, LQTY, serves governance and protocol utility purposes. Liquity enables users to borrow a USD-pegged stablecoin (TEXT) against supported collateral, with 0% interest rates and fixed borrowing terms. LQTY holders can participate in governance decisions, such as parameter changes and protocol upgrades. If you’re new to Liquity, understand that the system relies on over-collateralization and automated stability mechanisms to keep the stablecoin near $1.

How does Liquity work, and what role does LQTY play in the system?

Liquity operates as a non-custodial borrowing protocol where users lock ETH as collateral to mint a stablecoin called LUSD (the Liquity stablecoin). The protocol uses a sweeping liquidation mechanism, where if collateral value falls below a required ratio, positions may be liquidated to protect stability. LQTY acts as the governance and fee-rebate token within the system. LQTY holders can vote on parameters like stability pool fees, borrowing rate mechanics, and collateral requirements. Additionally, Liquity distributes a portion of protocol revenue to LQTY stakers through a zero-fee system that preserves long-term incentives for liquidity providers and borrowers alike.

What is the current price and market status of Liquity (LQTY)?

As of the latest data, LQTY trades around $0.356 per token, with recent price movement showing a slight decline of about 2.5% in the last 24 hours. Liquity has a maximum supply of 100 million LQTY tokens, with a circulating supply close to 98 million. Market cap sits in the mid tens of millions range, reflecting relatively modest liquidity compared to larger DeFi projects. For traders, consider monitoring daily price changes, total supply dynamics, and liquidity on major decentralized exchanges to gauge potential entry or exit points.

Is Liquity a good investment, and what are the risks to watch for?

Investing in Liquity involves both opportunities and risks. Potential upside includes participation in decentralized governance and exposure to a stable, growing DeFi protocol with a unique zero-interest borrowing model. However, risks include collateral volatility (ETH price swings can trigger liquidations), smart contract risk (audits, upgrades, and bugs), liquidity risk on LQTY markets, and macro conditions affecting ETH and DeFi usage. Diversifying exposure, using proper risk management (e.g., limit orders, stop-loss strategies on derivatives, or staking across different protocols), and staying updated with protocol audits and governance proposals can help mitigate some risks.

How can I use Liquity and participate in governance with LQTY?

To participate, you’ll typically acquire LQTY on supported platforms and connect a wallet that supports ERC-20 tokens. Liquity governance allows LQTY holders to vote on protocol parameters such as stability pool incentives, borrowing dynamics, and liquidation thresholds. Some platforms may also offer staking-like participation through reward mechanisms funded by protocol revenue. Before voting, review the latest Liquity governance proposals, ensure you understand the impact of each change, and consider engaging with community channels (official forum, Discord, or social media) to gauge sentiment and timing. Always use reputable wallets and double-check contract addresses when transferring or voting.

Frequently Asked Questions About Liquity (LQTY) Lending