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§ Private Profile · Baar, Zug, Switzerland
Liquity is a technology company.
Liquity operates as a decentralized borrowing protocol enabling users to mint stablecoins against their Ethereum (ETH) and staked ETH collateral. The protocol allows for interest-free borrowing of its native stablecoin, LUSD (Liquity USD), with a focus on high capital efficiency and a liquidation mechanism designed for stability. Its technical approach emphasizes immutability and governance minimization, aiming to provide a robust and uncensorable borrowing environment on the Ethereum blockchain.
The company was founded by Robert Lauko and Rick Pardoe, launching its V1 protocol in April 2021. Robert Lauko, who holds a Ph.D. in Law and previously conducted research at DFINITY, envisioned a more resilient and truly decentralized stablecoin borrowing system. Rick Pardoe, with academic backgrounds in Physics and Economics, served as a key Solidity developer, translating this vision into a functional and secure protocol architecture.
Liquity serves individuals seeking to leverage their ETH holdings without selling them, offering a way to access stablecoin liquidity. These users benefit from borrowing against collateral at a high loan-to-value ratio. The company’s long-term vision is to establish a foundational primitive in decentralized finance, offering an uncompromisingly censorship-resistant and immutable borrowing experience that empowers users with sovereign control over their digital assets and borrowing terms.
Liquity has raised $8.0M across 2 funding rounds.
Liquity has raised $8.0M in total across 2 funding rounds.
Liquity has raised $8.0M in total across 2 funding rounds.
Liquity's investors include Ballistic Ventures, Divergence Ventures, Founders Fund, Hack VC, Lightspeed Venture Partners, Menlo Ventures, Tomahawk.VC, Alex Pack, Mark Cuban, Regan Bozman, Tony Sheng, Polychain Capital.
Liquity has raised $8.0M across 2 funding rounds. Most recently, it raised $6.0M Series A in March 2021.
| Date | Round | Lead Investors | Other Investors | Status |
|---|---|---|---|---|
| Mar 1, 2021 | $6M Series A | — | Ballistic Ventures, Divergence Ventures, Founders Fund, Hack VC, Lightspeed Venture Partners, Menlo Ventures, Tomahawk.vc, Alex Pack, Mark Cuban, Regan Bozman, Tony Sheng | Announced |
| Sep 1, 2020 | $2M Seed | Polychain Capital | Divergence Ventures, Hack VC, Alex Pack, Regan Bozman, Tony Sheng | Announced |
Liquity is a decentralized borrowing protocol on Ethereum that enables users to borrow USD-pegged stablecoins (LUSD in V1, BOLD in V2) against Ether (ETH) and liquid staked ETH (LSTs) like wstETH and rETH as collateral, offering interest-free loans in V1 (via one-time fees) or user-set rates in V2.[2][3][4] It serves DeFi users, including retail and institutions, solving the problem of volatile crypto collateral by providing over-collateralized, algorithmically governed loans without intermediaries, ensuring stability through rapid liquidations and minimum collateral ratios.[2][3][4] Launched in 2021 after raising $8.4M (including a $6M Series A from investors like Pantera Capital, Alameda Research, and Polychain), it peaked at $4.4B TVL but holds ~$660M as of 2022 data, with V2 introducing enhanced features like LST support and improved peg mechanisms for greater capital efficiency.[2][3][4]
Liquity was founded in 2020 by CEO Robert Lauko, a former DFINITY research associate, and Rick Pardoe, the lead engineer, who developed the protocol over 18 months before launching on Ethereum mainnet in April 2021.[3] The idea emerged to create a fully decentralized alternative to fiat-backed stablecoins like USDC, addressing DeFi volatility with interest-free borrowing against ETH collateral and algorithmic governance.[3][4] Early traction was strong: backed by ~$6M Series A from Alameda Research, AngelDAO, and Nima Capital, its LQTY governance token debuted at $9 and hit $92 on day one; within a year, it issued over $4B in credit and $28M revenue, integrating with institutions like Bitcoin Suisse in 2022.[2][3]
Liquity rides the DeFi 2.0 and LST trends, capitalizing on Ethereum's shift to liquid staking post-Shanghai upgrade, where LSTs like wstETH/rETH dominate for yield without lockups.[4] Timing aligns with institutional DeFi adoption—e.g., Bitcoin Suisse integration—and demand for non-custodial, crypto-only stablecoins amid USDC/Tether scrutiny.[3] Market forces like volatile ETH prices favor its over-collateralized model and fast liquidations for protocol health, while V2's innovations counter TVL downturns by boosting composability and yield.[2][3][4] It influences the ecosystem by pioneering immutable, user-controlled borrowing, enabling broader apps via resilient stablecoins and competing with Aave by emphasizing decentralization over centralized risks.[2][4]
Liquity's V2 upgrades position it for rebounded growth in a maturing DeFi landscape, leveraging LST proliferation and user-driven yields to recapture TVL highs amid Ethereum's scaling (e.g., via L2s). Trends like real-yield stablecoins and institutional inflows will amplify its edge, potentially evolving influence through BOLD/LUSD integrations and LQTY governance expansions.[4] As DeFi matures toward TradFi bridges, Liquity could solidify as a core primitive for efficient, trust-minimized borrowing—reinforcing its origins as a volatility-proof protocol built for the long haul.[2][3][4]