How to Lend Liquity (LQTY): A Step-by-Step Guide

Introduction

Lending Liquity can be a great option for those who want to hold LQTY but earn yield. The steps can be a little daunting, especially the first time you do them. That's why we've put this guide together for you.

Step-by-Step Guide

1. Obtain Liquity (LQTY) Tokens
In order to lend Liquity, you need to have it. To obtain Liquity, you'll need to purchase it. You can choose from these popular exchanges.
Platform Coin Price
Binance Liquity (LQTY) 0.4
Coinbase Liquity (LQTY) 0.4
Kraken Liquity (LQTY) 0.4
OKX Liquity (LQTY) 0.52
Uphold Liquity (LQTY) 1.01
BingX Liquity (LQTY) 0.4
See all 41 prices
2. Choose a Liquity Lender
Once you have LQTY, you'll need to choose a Liquity lending platform to lend your tokens. You can see some options here.
Platform Coin Interest rate
Kucoin Liquity (LQTY) Up to 0.5% APY
3. Lend Your Liquity
Once you've chosen a platform to lending your Liquity, transfer your Liquity into your wallet in the lending platform. Once it's deposited, it will start earning interest. Some platforms pay interest daily, while others are weekly, or monthly.
4. Earn Interest
Now all you need to do is sit back while your crypto earns interest. The more you deposit, the more interest you can earn. Try to make sure your lending platform pays compounding interest to maximise your returns.

Platform	Coin	Price
Binance	Liquity (LQTY)	0.4
Coinbase	Liquity (LQTY)	0.4
Kraken	Liquity (LQTY)	0.4
OKX	Liquity (LQTY)	0.52
Uphold	Liquity (LQTY)	1.01
BingX	Liquity (LQTY)	0.4

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

What to be Aware of

Lending your crypto can be risky. Make sure you do your research before depositing your crypto. Don't lend more than you're willing to lose. Check their lending practices, reviews, and how they secure your cryptocurrency.

Latest Movements

Liquity (LQTY) is currently priced at $0.5 with a 24-hour trading volume of $25.26M. The market cap of Liquity stands at $148.11M, with 96.94M LQTY in circulation. For those looking to buy or trade Liquity, Kucoin offers avenues to do so securely and efficiently

Market cap: $148.11M
24h volume: $25.26M
Circulating supply: 96.94M LQTY

See latest information

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.