# Liquity > Borrow on your terms Liquity provides decentralized borrowing through immutable smart contracts, allowing users to mint stablecoins against crypto collateral. Liquity operates as an immutable borrowing protocol on Ethereum, enabling users to deposit ETH and Liquid Staking Tokens as collateral to mint USD-pegged stablecoins. The protocol implements governance-free smart contracts that cannot be modified or upgraded, with automated liquidation mechanisms and stability pools. Users can borrow through V1 with zero interest rates or V2 with user-set interest rates. - Type: Company - Sector: Finance - Status: Active - Profile: https://thegrid.id/profiles/liquity ## Products - [Liquity V1](https://thegrid.id/profiles/liquity): Liquity V1 implements zero-interest borrowing through immutable smart contracts, enabling users to mint LUSD against ETH collateral at 110% minimum ratio. Features include one-time borrowing fees, stability pool deposits earning liquidation gains and LQTY rewards, direct LUSD redemption for underlying ETH, and LQTY staking for protocol fee distribution. The protocol operates without governance, upgrades, or admin keys. (Decentralised Borrowing & Lending, Live) - [Liquity V2](https://thegrid.id/profiles/liquity): Liquity V2 implements multi-collateral borrowing with user-set interest rates, enabling minting of BOLD stablecoins against WETH, wstETH, and rETH through isolated branch markets. Features include up to 91% LTV ratios, one-click leverage multiplication up to 11x, interest rate delegation to third parties, multiple troves per address, stability pool deposits earning 75% of protocol interest revenue plus liquidation gains, Protocol Incentivized Liquidity directing 25% of revenue to DEX incentives, LQTY staking for governance voting and dual V1 rewards, and redemption mechanism based on interest rates rather than LTV. The protocol maintains immutability while separating liquidation risk from redemption risk through adaptive user-controlled rates. (Decentralised Borrowing & Lending, Live, Main Product) ## Assets - [Liquity USD (LUSD)](https://thegrid.id/profiles/liquity): LUSD is a USD-pegged stablecoin issued by the Liquity V1 protocol. It is used to borrow against ETH collateral with zero ongoing interest, requiring only a one-time borrowing fee and a minimum collateral ratio of 110%. Holders can redeem LUSD directly for the underlying ETH at any time, creating a price floor that maintains the peg through arbitrage opportunities rather than relying on centralized reserves. (Stablecoin) - [Liquity (LQTY)](https://thegrid.id/profiles/liquity): LQTY is the secondary token of the Liquity protocol. It is used to capture protocol revenue, which is distributed to all stakers of LQTY. Stakers earn voting power that increases linearly over time, and they can allocate votes to direct a portion of protocol incentives to arbitrary addresses specified as Initiatives. (Governance) - [BOLD (BOLD)](https://thegrid.id/profiles/liquity): BOLD is a USD-pegged stablecoin issued by the Liquity V2 protocol. It is used as collateral in DeFi applications, for earning yield through Stability Pool deposits, and for liquidity provision on decentralized exchanges. Borrowers set their own interest rates when minting BOLD, with lower rates increasing redemption risk where BOLD holders can exchange tokens for the borrower's collateral, creating market-driven peg stability without governance intervention. (Stablecoin) ## Links - [Main](https://liquity.org) - [Blog](https://www.liquity.org/blog) - [Documentation](https://docs.liquity.org) - [Whitepaper](https://docs.liquity.org/v2-documentation/technical-docs-and-audits) - [Privacy policy](https://www.liquity.org/privacy-policy) - [Terms of Service](https://www.liquity.org/website-terms) - [Twitter / X](https://x.com/LiquityProtocol) - [Discord](https://discord.gg/Liquity) - [LinkedIn](https://linkedin.com/company/Liquity) - [Telegram](https://t.me/liquityprotocol) - [GitHub](https://github.com/liquity) ## Legal This data is provided under two licensing models. Model 1 - open data. The open data core is licensed under the Open Database License (ODbL) — a copyleft/share-alike license allowing free use, modification, and sharing for any purpose. Attribution is required: include "Powered by The Grid" linking to https://thegrid.id wherever the data is used. Derivative databases must be shared under ODbL terms. 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