$1 billion worth of locked up value according o data from Dune analytics, has been attracted by the team behind liquidity protocol- a DeFi project launched on April 5.
As a free lending protocol that offers interest free loans against Ethereum locked as collateral, the Pantera Capital-backed liquidity is a Swiss-based decentralized and governance, in which the users are required to maintain a minimum ration on their collateral at 110%.
Pegged to the value of USD at one to one ration, loans are paid out in the protocol algorithms stable coin LUSD. Also, the protocol, has minted a supply of 480 million stable coins so far and it automatically generates LUSD to meet user demand.
The loans are secured by the protocol’s Stability Pool that acts as a source of liquidity to repay liquidated debt, and also by fellow borrowers collectively acting as guarantors of last resort. Users can earn money through the protocol by staking liquidity and earn revenue from issuance fees in LUSD and redemption fees in ETH.
Data from the mammoth 10-day run published via DuneAnalytics revealed that borrowing demand has rewarded stakers so far, with an average of roughly $240,000 of fees generated per day on the protocol between April 12 and April 14. The total staked amount edged past $720,000 on April 15, and the majority of users are keeping within a collateral range between 150-250%.
On March 29 Cointelegraph reported that the Liquidity Protocol had closed its Series A funding round led by Pantera Capital with a $6 million investment, which included additional contributions from companies such as quantitative investment firm Alameda Research.