Liquity is a decentralized lending protocol, users can use Ethereum as collateral to withdraw loans with 0 interest. Loans are paid out in LUSD, a USD-pegged stablecoin, and require a minimum collateralization ratio of just 110%. In addition to collateral, these loans are guaranteed by a stable pool comprising LUSD and other borrowers who collectively act as guarantors of last resort.
Liquity's token LUSD is a fully redeemable stablecoin. At any time, the system allows holders to redeem LUSD tokens in exchange for related ETH collateral based on the face value of the redeemed tokens, the current ETH:USD exchange rate and the current benchmark exchange rate. In this way, as long as the trading price of LUSD is lower than $1, it can directly arbitrage, creating a price threshold for LUSD.

Liquity's decentralized lending protocol, the main benefits are:
Interest-free liquidity
Ethereum holders can take out zero-interest loans in the form of LUSD, a stablecoin pegged to the U.S. dollar .
Low mortgage rate
Thanks to the efficient instant liquidation mechanism, borrowers only need to maintain a collateral ratio of 110%.
Directly redeemable
LUSD can be redeemed for the associated ETH collateral at face value.
Governance Free
Price stability does not rely on human management, but is achieved through protocol incentives and algorithmically adjusted redemption and loan issuance fees (0% by default).
Censorship Resistant
Legality is a protocol that is not controlled by anyone. Third parties provide front-end operations that benefit from a unique decentralized incentive structure.
Growth Drivers
Early adopters who contribute to the stability of the system while driving growth will reap attractive financial rewards.