Convert
Singapore Dollar (SGD) to Liquity (LQTY) Instantly
Purchase Liquity (LQTY) with Singapore Dollar (SGD) 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 SGD/LQTY pair and why is it important for DeFi users in Singapore?
The SGD/LQTY pair represents a direct fiat on-ramp, allowing users to purchase Liquity's secondary token, LQTY, using Singapore Dollars. This is significant because LQTY is a key component of the Liquity protocol, a decentralized borrowing protocol on Ethereum. By staking LQTY tokens, holders can earn a share of the protocol's revenue, which is generated from fees when users take out interest-free loans by minting the LUSD stablecoin against ETH collateral. -
What are the common methods to buy LQTY with SGD?
To buy LQTY with Singapore Dollars, you typically need to use a cryptocurrency exchange that is regulated by the Monetary Authority of Singapore (MAS) and lists the SGD/LQTY trading pair. The process involves completing KYC/AML verification, depositing SGD into your exchange account via methods like FAST transfer or PayNow, and then executing a buy order for LQTY on the platform's order book. -
What is the function of LQTY within the Liquity protocol's Stability Pool?
LQTY's primary utility is staking. By staking LQTY tokens, users earn protocol fees paid in LUSD and ETH. These fees are generated from loan issuance (borrowing LUSD) and redemptions. This mechanism allows LQTY holders to capture the value generated by the decentralized borrowing protocol, directly benefiting from its adoption and the stability of its LUSD stablecoin without being exposed to the debt from Troves (the protocol's collateralized debt positions). -
After buying LQTY with SGD, what type of digital wallet is needed for secure storage?
LQTY is an ERC-20 token on the Ethereum blockchain. For secure, long-term storage after a digital asset purchase, you should transfer it from the exchange to a personal Ethereum-compatible wallet. Options include software wallets like MetaMask or hardware wallets such as Ledger or Trezor, which offer the highest level of security by keeping your private keys offline. This practice of self-custody is a fundamental security measure. -
How does Liquity's 110% minimum collateral ratio differ from other protocols and what does it mean for LQTY stakers?
Liquity's 110% minimum collateral ratio is significantly more capital-efficient than many other DeFi lending protocols, which often require 150% or more. This lower ratio makes borrowing LUSD more accessible. For LQTY stakers, this capital efficiency can lead to higher protocol adoption and thus more fee generation from issuance and redemptions. The protocol manages the higher risk through instant liquidations and the Stability Pool, creating a robust system that benefits those who stake LQTY.