Liquity protocol’s native token – LQTY – shot up by 108.36% after a listing announcement by crypto giant, Binance.
The decentralized borrowing protocol essentially enables users to draw 0% interest loans against Ether used as collateral. LUSD, which is a USD-pegged stablecoin, is used to pay out loans and needs to maintain a minimum collateral ratio of only 110%.
- Binance announced listing LQTY in the Innovation Zone with two trading pairs – LQTY/BTC, and LQTY/USDT. The trading will commence on February 28th. Withdrawals, on the other hand, will open on March 1st.
- Additionally, LQTY is also being added as a borrowable asset in the isolated margin account.
- The Innovation Zone is essentially a dedicated trading zone that enables users to trade new tokens that are likely to have higher volatility and can potentially pose a risk greater than other tokens.
- Following the listing, LQTY surged by well over 30%.
- According to the latest stats in DefiLlama, the total value locked (TVL) in the protocol stands above $600 million. While this is a substantial reduction from its peak of $4.52 billion during the bull run in 2021, the TVL figure is still up by 50% since the beginning of this year.