$LQTY LQTY token is a secondary token issued by the Liquity protocol. Liquity is a decentralized lending protocol that allows users to borrow against Ether (ETH) as collateral with 0% interest. These loans are paid out in LUSD (a stablecoin pegged to the US dollar) and require a minimum collateralization ratio of 110%. The main function of the LQTY token is to earn income from system-generated fees and incentivize early adopters and front-end operators. LQTY rewards are primarily accumulated for stability providers, which include users who deposit LUSD into the stability pool, front-end operators who facilitate these deposits, and liquidity providers in the LUSD:ETH Uniswap pool.

The total supply cap of the LQTY token is 100,000,000 tokens. LQTY is not a governance token as there is no Liquity governance. LQTY token holders can earn fees generated from loan issuance and LUSD redemptions by staking. The maximum supply of LQTY is 100,000,000 tokens, with a current circulating supply of 90,973,054 tokens, resulting in a circulation rate of 90.97% and a current market cap of $85.37 million.

The main benefits of the Liquity protocol include zero interest loans, a minimum collateralization ratio of 110%, no governance, direct redemption, and complete decentralization. The LQTY token, as the core token of the Liquity ecosystem, not only provides users with an efficient and secure asset management tool but also allows users to participate in the platform's operation and development through decentralized governance and revenue distribution mechanisms. With the continuous development of the cryptocurrency market, the Liquity protocol and LQTY token are expected to stand out in future market competition and become the preferred choice for users.