Ether-Backed DeFi Platform Offers Interesting Incentives

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Episode
138 of 720
Længde
9M
Sprog
Engelsk
Format
Kategori
Økonomi & Business

A reformed lawyer, Liquity founder Robert Lauko met Vitalik Buterin in 2015 in Switzerland. After that fateful encounter, Lauko decided to dedicate his professional time to developing crypto projects. His first venture is a decentralized borrowing protocol with DNA similar to MakerDAO’s but with the Ethereum blockchain as its base layer. Among its intriguing set of incentives, Liquity offers borrowers the opportunity to pay an up-front fee rather than an interest rate over time. Its ability to operate with lower collateralization requirements compared to other protocols is ensured by an efficient liquidation mechanism. This mechanism is based on a stability pool underpinned by its proprietary stablecoin, LUSD. Lauko breaks down LUSD’s functionality, focusing on its different incentives for borrowers and lenders, and explains why Ether backing and redeemability make it special. Recorded on April 11, 2022. Learn more about your ad choices. Visit podcastchoices.com/adchoices


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