Liquid Loans What Are The Key Benefits?

0% interest rate – as a borrower, there’s no need to worry about constantly accruing debt

110% MCR – a low Minimum Collateral Ratio means more efficient usage of your deposited PLS

Governance free – all operations are algorithmic and fully automated, and protocol parameters are set at time of deployment

Directly redeemable – the protocol allows you to exchange 1 USDL stablecoin for USD $1 worth of PLS at any time

Fully decentralized – the contracts have no admin keys and can be accessible via other front ends, making it censorship resistant

What is USDL and LOAN?

USDL is the USD value pegged stablecoin used to pay out loans on the protocol. It is an algorithmic stablecoin that aims to always be worth one US dollar and at any time it can be redeemed against the underlying collateral at face value.

LOAN captures the fee revenue that is generated by the system and incentivizes early adopters. You earn LOAN by providing USDL stablecoin to the Stability Pool in exchange for rewards. You can also stake your LOAN tokens to earn the revenue paid for borrowing or redeeming USDL.

Powerful incentives

With Liquid Loans, all the stability and liquidity in the protocol is provided by the users. In order to incentivize people to provide stability and liquidity, there are healthy rewards for taking part.

To be a stability provider, all you need to do is add USDL to the Stability Pool, and you’ll receive gains in (discounted) PLS from liquidations and receive rewards in the form of LOAN tokens as well. To get your hands on USDL in the first place, you simply mint it by collateralizing your PLS, or buy USDL on the open market.