Convert
Australian Dollar (AUD) to Liquity (LQTY) Instantly
Purchase Liquity (LQTY) with Australian Dollar (AUD) easily at Switchere and benefit from fast, secure transactions.
About
Liquity (LQTY)
Liquity is a decentralized borrowing protocol built on the Ethereum blockchain that offers a unique approach to DeFi lending. Its core function is to allow users to draw interest-free loans against their Ether (ETH) collateral. These loans are paid out in LUSD, a fully redeemable, USD-pegged stablecoin. A primary innovation of this digital asset protocol is its exceptional capital efficiency, requiring a minimum collateral ratio of only 110%. This design makes it one of the most accessible on-chain borrowing solutions available within the decentralized finance ecosystem, directly addressing the issue of over-collateralization common in other platforms.
The system’s architecture is rooted in true decentralization. Liquity’s smart contracts are immutable and the protocol operates without any form of governance, minimizing human intervention and creating a more predictable financial instrument. Its robust liquidation mechanism is managed algorithmically and supported by a Stability Pool, where LUSD holders can deposit their tokens to participate in liquidating under-collateralized positions, known as Troves. The native utility token, LQTY, is not a governance token. Instead, its primary function is for staking. By staking LQTY, holders earn a share of the protocol fees generated from LUSD issuance and redemptions, providing a direct revenue stream from the protocol's core operations.
How to Buy Liquity (LQTY)
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Frequently asked questions
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What is the AUD/LQTY pair and its function in the crypto market?
The AUD/LQTY pair represents a direct fiat on-ramp for purchasing Liquity's secondary token (LQTY) with Australian Dollars. Its function is to provide Australian investors with direct access to the governance and revenue-sharing token of the Liquity Protocol, a decentralized borrowing protocol on Ethereum that issues the LUSD stablecoin against ETH collateral. -
What are common methods to deposit AUD on an exchange to buy LQTY?
To buy LQTY with Australian Dollars, you typically need to use an AUSTRAC-regulated cryptocurrency exchange. Common deposit methods for AUD include direct bank transfers using the New Payments Platform (NPP), PayID for instant transfers, and sometimes POLi Payments or BPay. After completing KYC/AML compliance, you can fund your account and place an order on the AUD/LQTY order book. -
What is the primary utility of staking LQTY tokens after purchase?
The primary utility of staking LQTY is to earn a share of the protocol's fee revenue. When users open a collateralized debt position (a 'Trove') to borrow LUSD, or when LUSD is redeemed, fees are generated in LUSD and ETH. By staking LQTY in the protocol, you become eligible to claim a proportional share of these accumulated fees, directly linking your digital asset's return to the protocol's activity. -
What type of digital wallet is needed for LQTY tokens bought with AUD?
Since LQTY is an ERC-20 token operating on the Ethereum blockchain, you will need an Ethereum-compatible digital wallet. After purchasing LQTY on an exchange with AUD, it's a security best practice to transfer it to a self-custody wallet like MetaMask, Trust Wallet, or a hardware wallet such as Ledger or Trezor. This gives you full control and allows you to interact with the Liquity Protocol for staking. -
How is LQTY related to the LUSD stablecoin and ETH collateral?
In the Liquity Protocol ecosystem, users deposit ETH as collateral into a smart contract called a 'Trove' to mint the LUSD stablecoin. LQTY is the protocol's secondary token. It captures the fee revenue from these borrowing and redemption activities and is also used to incentivize the Stability Pool, which acts as the first line of defense in maintaining protocol solvency during liquidations.