Event Timeline
About Liquity
Liquity lets a holder borrow LUSD against ETH at zero interest, paying a one off fee instead. Its more unusual property is what it lacks: no governance, no upgradeable contracts, and no admin keys. The rules are fixed at deployment and nobody can change them.
That design puts the burden of solvency on the Stability Pool, where depositors absorb liquidated debt in exchange for discounted ETH. LQTY was distributed to those depositors and to the operators running front ends for the protocol.
Airdrop Stats
How it worked to get the Liquity airdrop
Deposit LUSD into the Stability Pool
Pool depositors are the mechanism that absorbs liquidations, and the distribution went to them rather than to borrowers.
Be early
Emissions followed a decaying schedule, so the same deposit earned substantially more in the first weeks than later in the year.
Or run a front end
Liquity deliberately had no official interface. Operators who ran one received a share of the rewards their users earned.
Hold LQTY for the fee share
Staked LQTY earns a portion of borrowing and redemption fees, which is the token's only function given there is no governance.
Was the Liquity airdrop worth it?
- Being early was the whole design. The emission curve decayed from day one, so the distribution was explicitly weighted toward people who took the risk before the system had proved it could handle a liquidation cascade.
- Immutability is the product. With no admin keys and no governance, there is nothing to vote on and nothing to change. That makes LQTY a cash flow claim rather than a governance token, which is rare.
- The front end model never really took. Rewarding third party interface operators was a genuinely novel attempt at decentralising access, but few operators materialised at scale.
Liquity Official Links
Official channels, documentation and community for this airdrop:
This airdrop has concluded. It is kept for research rather than participation.
