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    Liquity

    LQTY

    Evaluation Score

    Overall rating on a scale of 0-10

    RiskReturn
    07.810
    Risk Level:
    Medium
    Recommendation:Buy
    Evaluated:July 21, 2025 (v5)

    Crypto Token Health Score Explained

    Our AI-powered health score evaluates on-chain metrics, community support, tokenomics, and more. This helps DeFi investors understand risk, compare tokens, and make informed decisions. Learn how to analyze DeFi tokens' risk and use these insights for DeFi portfolio risk management.

    AI Analysis

    Comprehensive evaluation of the token

    Overall Analysis

    Liquity combines an immutable, zero-interest stablecoin platform with a veteran team and rigorous security framework. Strong performance in security (9/10) and governance (9/10) is tempered by moderate development velocity (6.8/10) and community reach (6.5/10). Tokenomics (7.5/10) underpin sustainable fee-capture but include significant insider vesting, and market fit (8/10) in ETH-only lending has driven ~$430 M TVL. Overall, LQTY scores 7.8/10 with a Medium risk profile. Investors seeking secure, innovative DeFi yield can consider a Buy, while monitoring development momentum and upcoming unlock events.

    Detailed Analysis by Category

    Development Activity

    Code updates and developer engagement

    RiskReturn
    06.810

    Community Support

    Social media presence and community engagement

    RiskReturn
    06.510

    Tokenomics

    Supply, distribution, and utility

    RiskReturn
    07.510

    Market & Use Case

    Value proposition and competitive landscape

    RiskReturn
    08.010

    Team & Governance

    Team background and project governance

    RiskReturn
    09.010

    Security & Audits

    Security history and audit status

    RiskReturn
    09.010

    About Liquity (LQTY)

    Liquity (LQTY)

    Liquity (LQTY) is the native utility and governance token of the Liquity protocol, a decentralized borrowing and stablecoin issuance platform built on Ethereum. The token underpins protocol stability and community-driven governance.

    Key Features

    • Governance: LQTY holders can propose and vote on protocol parameter updates.
    • Fee Distribution: A portion of Liquity’s protocol fees is allocated to LQTY holders.
    • Stability Support: Contributes to the security and stability of the Liquity system.

    Protocol Overview

    Liquity enables the issuance of LUSD, an interest-free stablecoin pegged to USD, against ETH collateral. Stability is maintained through automated collateralization ratios, redemption mechanics, and incentive-based fee structures.

    Token Details

    • Token Name: Liquity
    • Symbol: LQTY
    • Blockchain: Ethereum (ERC-20)
    • Use Cases: Governance participation, fee earning, protocol security

    This description is optimized for search engines and provides a concise overview of the Liquity (LQTY) token.

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