Convert
Brazilian Real (BRL) to Liquity (LQTY) Instantly
Purchase Liquity (LQTY) with Brazilian Real (BRL) 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 most common way to buy Liquity (LQTY) with Brazilian Real (BRL)?
The most common method is using a cryptocurrency exchange that serves the Brazilian market and lists the LQTY token. Users typically complete a KYC/AML verification, deposit BRL via a fiat on-ramp like Pix or a TED transfer, and then trade BRL for LQTY on the exchange's order book. This provides a direct pathway into the Liquity protocol's ecosystem. -
What is the function of the LQTY token within the Liquity protocol's decentralized borrowing system?
LQTY is the secondary token of the Liquity protocol. Its primary utility is staking. By staking LQTY, holders can earn a share of the protocol's revenue, which is generated from issuance fees when users open a Trove to borrow the LUSD stablecoin and from redemption fees. It allows holders to capture the value generated by this interest-free borrowing platform on the Ethereum blockchain. -
After buying LQTY with BRL, how do I secure my digital assets?
For secure trading and asset management, it's highly recommended to withdraw your LQTY from the exchange to a personal digital wallet where you control the private keys, such as MetaMask or a hardware wallet. This protects your funds from exchange-specific risks and allows you to directly interact with the Liquity protocol's smart contracts on the Ethereum blockchain for staking in the Stability Pool. -
What is the key difference between LQTY and the LUSD stablecoin within the Liquity protocol?
They serve distinct functions. LUSD is the USD-pegged stablecoin that users borrow by locking up ETH as collateral in an over-collateralized loan position called a 'Trove'. It's the product of the protocol. In contrast, LQTY is the protocol's secondary token that captures the fee revenue from LUSD issuance and redemptions. You stake LQTY to earn protocol fees; you borrow LUSD for capital efficiency. -
Are there advantages to using a BRL/LQTY pair for Brazilian investors?
Yes, using a direct BRL/LQTY trading pair offers significant advantages. It provides a direct fiat on-ramp, allowing investors to avoid conversion fees and potential slippage from multi-step trades (e.g., BRL to USD, then USD to LQTY). The integration of local payment systems like Pix on Brazilian exchanges makes the BRL deposit process nearly instantaneous and low-cost, improving the overall efficiency of the blockchain transaction.