Date
July 18, 2022
Timestamps
• 0:00 Intro • 2:40 Introduction to Liquity • 6:14 Framework of the base fee • 11:52 How Liquity pivoted to Chicken Bonds • 18:32 Ways to interact with Chicken Bonds • 23:42 How the three buckets work • 27:12 More information about the permanent bucket • 29:05 Where does the extra yield come from? • 35:40 What happens when everyone “Chickens out”? • 38:40 When does rebonding no longer make sense • 40:01 Publius thoughts on Liquity • 49:12 Where is the yield coming from that is not susceptible to impermanent loss? • 53:49 What is the role of LUSD in DeFi? • 56:36 What is the issue with the price? • 1:00:20 Closing thoughts
Type
The Bean Pod
- Recordings
- Notes (WIP)
- Introduction to Liquity
- Base fee and efficient liquidations
- How Liquity pivoted to Chicken Bonds
- Ways to interact with Chicken Bonds
- How the three buckets work
- More information about the permanent bucket
- Where does the extra yield come from?
- What happens when everyone “chickens out”?
- When does rebonding no longer make sense?
- Publius thoughts on Liquity
- Where is the yield coming from that is not susceptible to impermanent loss?
- What is the role of LUSD in DeFi?
- What is the issue with the price?
Recordings
Notes (WIP)
Introduction to Liquity
- Started in mid-2021 as a DeFi lending solution with low, flat fees and censorship resistance.
- Accepts ETH as collateral to mint the stablecoin LUSD.
- Core of the protocol exists as immutable smart contracts.
- High capital efficiency.
- Users can benefit from liquidations.
Base fee and efficient liquidations
- Charges a one time fee called the base fee instead of ongoing interest.
- Makes borrowing costs predictable.
- If you are going to hold your position for 3 months or more, Liquity will be more cost effective than any other protocol.
- Due to fast liquidations that are made possible by user funds, Liquity can offer very low collateral ratios.
- LUSD can be redeemed, in which case it is redeemed from the least collateralized position.