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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 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]
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.