Liquity Token (LQTY) is the secondary governance and incentives token of the Liquity protocol, an over-collateralized, interest-free borrowing platform on Ethereum and Arbitrum. LQTY captures a share of protocol fees, rewarding Stability Pool depositors, frontend operators, and LUSD/ETH liquidity providers. With a halving-driven issuance curve and dual-reward staking (LUSD & ETH), LQTY aligns early-adopter incentives and funds community-driven growth initiatives via Protocol Incentivized Liquidity (PIL).
LQTY is the governance and revenue-capture token of Liquity. It distributes a portion of borrowing and redemption fees to core participants (Stability Providers, frontend operators, and liquidity providers) while enabling community-driven growth funding through PIL.
You earn LQTY by depositing LUSD into the Stability Pool, facilitating deposits via a registered frontend, or providing liquidity to the LUSD/ETH pool on Uniswap.
In V1, you deposit LQTY into the staking contract to earn a pro-rata share of protocol fees, paid out in LUSD and ETH based on your stake percentage.
V2 adds governance-light incentives: stakers continue earning V1 fees and also gain voting power over Protocol Incentivized Liquidity initiatives. Voting power increases with staking age and is adjustable each weekly epoch.
PIL allocates 25% of protocol fee revenue (in LUSD & ETH) to external growth projects chosen by LQTY stakers, while 75% continues to reward Stability Pool depositors.
LQTY has deep liquidity on centralized exchanges such as HTX, OrangeX, Binance, and Coinbase Exchange (LQTY/USDT or LQTY/USD pairs). It’s also available on any ERC-20 DEX.
As an ERC-20 token on Ethereum and Arbitrum, LQTY is compatible with Bitcoin.com Wallet, MetaMask, Trust Wallet, Coinbase Wallet, Rainbow, and hardware wallets like Ledger and Trezor.
Users benefit from real-yield rewards on stable borrowing, sustainable emissions for long-term incentives, decentralized growth funding via PIL, and governance participation without traditional DAO overhead.
LUSD is Liquity’s stablecoin used for borrowing, while LQTY is the secondary token that captures protocol revenue and enables governance-light incentives, complementing LUSD’s stability function.
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