The $USDC is back to 1$ but trust in centralized stablecoins like $USDT and $BUSD is damaged.

$LUSD allows you to earn from:

• Real Yield

• $LUSD bonds

• $ETH liquidations

The gold rush for decentralized stablecoins has started.

Today, you'll learn:

What is $LUSD & $LQTY?

Why everybody talks about them.

How to profit from them

What innovations do they bring in?

Why are they the most #decentralized?

I. Liquity as a DeFi protocol is:

#Immutable

#Non-custodial

#Governance-free

Besides collateral, the loans are secured by a Stability Pool.

This pool contains $LUSD and other borrowers collectively acting as guarantors of

last resort. How does it work?

II. Use cases of Liquity:

Borrow $LUSD against $ETH

Secure Liquity by providing $LUSD to Stability Pool

Stake $LQTY to earn the fee revenue paid for borrowing or redeeming $LUSD.

Redeem 1 $LUSD for 1 USD worth of $ETH when the $LUSD peg falls below $1.

Real yield?

III. You can earn a yield on @LiquityProtocol with:

$LUSD bonds

Staking - $LQTY

Stability Pool - $LUSD

Let's quickly explain each method.

IV. $LUSD bonds

$LUSD Chicken Bonds offer an amplified yield-earning and trading opportunity for $LUSD holders.

This also helps stabilize the price of LUSD and improve its liquidity.

These bonds have no maturity date.

This means: Bonded funds are always withdrawable.

Bond benefits

Bond captures an amplified,auto-compounded yield, which can be either held or traded.

Yield amplification is achieved by having three different sources directing their yield to $bLUSD

Bond itself is technically represented as an NFT which can be sold on #OpenSea.

Benefits of $bLUSD

It offers a higher yield compared to depositing $LUSD in Stability Pool

Yield produced is automatically harvested and compounded.

It’s an ERC-20 token that can be used as collateral with a rising floor

price(measured in $LUSD)

V. Chicken In/Out

You create a bond with $LUSD and receive $bLUSD.

You have two options now:

Claim bond (Chicken In)

Cancel bond (Chicken Out)

A fresh bond starts accruing $bLUSD rapidly, and as time passes, the accrual rate

slows down. Each option is described below:

VI. Bond strategies you can use.

There are 4 main strategies, be:

Traders

Bonder

Treasure

Liquidity provider

If you are more interested in detail, check their blog below. The team explained

each strategy with ease.

VII. Stability Pool - $LUSD

Deposit $LUSD to Stability Pool to:

Earn $LQTY rewards.

Earn $ETH from liquidations.

Current APR ≈ 8,42%

It's not nice to say, but:

More liquidations = More $ETH for YOU. Check the easy example below:

Where are liquidations coming from?

Trove.

A Trove is where you take out and maintain your loan.

In other words where you deposit $ETH to take out a $LUSD loan.

If $ETH price starts to dump, and you don't:

Add collateral.

Start to repay debt.

You will occur liquidation.

VIII. Staking - $LQTY

Stake $LQTY to earn a share of protocol fees in:

• $ETH

• $LUSD

Once staked, you will start earning a pro-rata share of the borrowing and

redemption fees.

#LiquityProtocol ranked 36 on #DefiLlama by fees in the last 30 days.

≈ $754k in #RealYield

IX. Redemptions

The process of exchanging 1 $LUSD for 1$ worth of $ETH at face value.

Users can redeem their $LUSD for $ETH at any time without limitations. Redeemed

$LUSD is burned.

A redemption fees might be charged on the redeemed amount.

Why?

The redeemed amount is taken into account for calculating the redemption fee.

As redemptions increase (implying $LUSD is below $1), so does the baseRate -

making borrowing less attractive.

This keeps new $LUSD from hitting the market and driving the price below $1.

X. Price stability

The price floor and price ceiling are accomplished by:

The minimum collateral ratio of 110%

Borrowing& redemption fees

Parity as a Schelling point

For more details about each mechanism, check the blog below:

Innovation

Every time someone redeems their $LUSD, protocol pays off loans with the lowest

collateral.

This mechanism protects #Liquity from liquidations, by paying the riskiest loans.

You as a borrower do not incur a net loss. But, you will lose some of your $ETH

exposure.

XI. Safer way to access $LUSD

If you don't want to put your $ETH as collateral to get $LUSD, you can swap it on DEX or CEX

DEXs:

Uniswap

Curve

CEX:

Gemini

Censorship resistant

No regulator can prohibit $LUSD issuance.

Its protocol is fully operated by code. The code is immutable.

Decentralization as we need.

XII. $LQTY Tokenomics

Circ. supply-91M

Max supply-100M

Market Cap-$225M

You can earn $LQTY by:

Depositing $LUSD into the Stability Pool

Providing liquidity to the LUSD/ETH Uniswap pool

Facilitating Stability Pool deposits through your front end

Stake $LQTY to earn fees.

XIII. Partners

They partnered up with some of the strongest players in crypto:

@PanteraCapital

@polychain

@NexusMutual

@synthetix_io

@coinbase

@VelodromeFi

@OlympusDAO

@Gemini

@HuobiGlobal

In the world of decentralized finance (DeFi), tensions are high as the founder of DeFiLlama, Charlie Watkins, faces backlash for his decision to launch a token against the wishes of his team. The situation has escalated to the point where a hostile takeover is now underway, with the DeFiLlama team forking the project.

The situation caught the attention of Andre Cronje, the Director at Fantom Foundation, who has come out in support of Watkins. In a tweet, Cronje defended Watkins, stating that it is easy to be ideological when you aren’t paying the bills. He went on to explain that Watkins has been funding all of DeFiLlama’s expenses out of his own pocket for years and that watching everyone turn on him is disgusting.

Cronje also argued that Watkins’ decision to launch a token is not motivated by greed, but rather a desire for sustainability. He points out that without Watkins’ financial support, DeFiLlama will have to find new sources of revenue, such as raising funds or adding ads.

Watkins has responded to the situation by announcing that the DeFiLlama team is forking the project due to the token launch against the team’s wishes. Watkins explained that the person who controls both DeFiLlama’s Twitter and domain has decided to launch the token, even though everyone on the team is against it.

The situation highlights the challenges that arise when different stakeholders have competing interests in a project. On the one hand, Watkins has invested a significant amount of money into DeFiLlama and is understandably looking for ways to sustain the project. On the other hand, the rest of the team is concerned about the impact that launching a token could have on the project’s reputation and long-term viability.

As DeFi continues to grow and evolve, these types of conflicts are likely to become more common. It remains to be seen how the situation with DeFiLlama will be resolved, but it serves as a reminder of the importance of effective governance and communication within decentralized projects.

#DeFi #DefiLlama #Llama #andrecronje #azcoinnews

This article was republished from azcoinnews.com

Two locations now host the decentralized finance leaderboard website.

A single team member has sought to issue a coin without receiving support from other team members, prompting DefiLllama, a decentralized finance data site, to question its leadership.

Now There Are Two "llama" Websites

At defillama.com, #DefiLlama first became up around October 2020. Recently, llama.fi has unveiled a website that is almost exact replica.

The majority of the DefiLlama team built the second site as a result of a "hostile takeover," in accordance of Oxngmi, one of the team members, who explained that there is a "ongoing attempt" to issue a #crypto token without the team's consent.

Tendeeno, another participant, asserted that 0xngmi's claims were true. He further claimed that OxLlam4 is the only person making an effort to launch the token.

DefiLlama was invented by 0xLlam4, although Tendeeno claimed that 0xngmi took over development after joining the team. He added that 0xngmi is the team's manager, accountable for salaries, and the majority legal owner of DefiLlama.

Due to a lack of site revenue, 0xLlam4 apparently plans to issue a coin against the team's preferences. Other group members cannot directly stop this outcome because 0xLlam4 controls the DefiLlama website and its Twitter account.

As 0xLlam4 hasn't spoken much in public, it's not obvious if or when the supposed crypto coin will be released. As of right now, his Twitter account is secret, and there doesn't seem to be a way to get in touch with the developer.

What Website Will Remain?

The main tool offered by both websites is currently the same: a leaderboard listing different #DeFi projects and showing the total amount of cryptocurrency locked in those projects.

Although the bulk of the team seemed to support llama.fi, it is uncertain whether the website will be able to draw in visitors considering that defillama.com has been up for more than two years.

If the two sides can reach an agreement, the two sites might be reunited.

Following internal resolution, the cloned variant of its analytics software now redirects to the official website.

DefiLlama, a #decentralized finance analytics platform, appears to have addressed an internal debate among its team that had previously threatened to "fork" the platform. Possible issue at #DefiLlama was initially disclosed in a March 19 Twitter post by developer 0xngmi, who claimed that DefiLlama was "undergoing a hostile takeover," with the introduction of a token dubbed "LLAMA" without employee approval or endorsement.

In response, DefiLlama's parent business accused "0xngmi and a few team members" of going "rogue" by attempting to grab DefiLlama's intellectual property while "inaccurately alleging the real owner is conducting a hostile takeover."

But, only a day later, it appears that the internal disagreement has been resolved.

The DefiLlama team apologized for the mishap in a March 20 Twitter thread, attributing it to "poor communication and a misunderstanding among the team," while adding that no new token was planned.

"We'd like to move on from what transpired. There is presently no LLAMA token planned, and any airdrop will be reviewed with the community, as with any major decision. We will take steps to be more transparent in order to prevent this from happening again."

The developer accused of "going rogue," 0xngmi, has stated that the internal difficulties have been resolved and that they will continue on board.

On March 20, Oxngmi tweeted that "all has been fixed, fork has been canceled," and that "all work on DeFiLlama will continue."

Tendeeno, a contributor who primarily works on other projects within the Llama Corp. umbrella, also confirmed that the team rectified the difficulties and opted to run DefiLlama "as usual."

The donor also informed everyone on the team that they were pleased with the outcome.

The webpage that 0xngmi suggested in their March 19 tweet now merely leads to the official DefiLlama platform.

DefiLlama is a multichain #DeFi analytics software best known for giving data on total value locked and trade volume on DeFi platforms.