Convert
Tunisian dinar (TND) to Liquity (LQTY) Instantly
Purchase Liquity (LQTY) with Tunisian dinar (TND) 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 TND/LQTY pair and what is its primary function in the crypto market?
The TND/LQTY pair represents the exchange rate between the Tunisian Dinar (TND) and the Liquity protocol's token (LQTY). Its primary function is to serve as a fiat on-ramp, allowing users to directly purchase LQTY tokens using TND. This enables participation in the Liquity ecosystem, where LQTY holders can stake their tokens in the Stability Pool to earn a share of the protocol's liquidation and redemption fees, which are generated from the LUSD stablecoin operations. -
What are the common methods for purchasing LQTY with Tunisian Dinar (TND)?
To purchase LQTY with TND, you typically need to use a centralized cryptocurrency exchange that supports TND deposits. The process usually involves creating an account, completing KYC/AML compliance checks, and then funding your account via a Tunisian bank transfer or other local payment methods accepted by the platform. Once your TND is credited, you can place an order on the TND/LQTY order book to execute the digital asset purchase. -
After buying LQTY with TND, what is the best way to securely store it?
For secure storage, it is highly recommended to withdraw your LQTY from the exchange to a self-custody digital wallet where you control the private keys. Since LQTY is an ERC-20 token on the Ethereum blockchain, compatible wallets include hardware wallets (like Ledger or Trezor) for maximum security, or software wallets (like MetaMask or Trust Wallet). This practice mitigates risks associated with exchange hacks and gives you full sovereignty over your assets for staking in the Liquity Stability Pool. -
What kind of fees can I expect when converting TND to LQTY?
When trading TND for LQTY, you will likely encounter several fees. First, a deposit fee for funding your exchange account with TND. Second, a trading fee on the platform, which can be a maker or taker fee depending on your order type. Finally, if you withdraw your LQTY to an external wallet, you will pay a blockchain transaction fee, known as a gas fee on the Ethereum network, which is independent of the exchange and fluctuates based on network congestion. -
How does LQTY staking differ from managing a Trove in the Liquity protocol?
Staking LQTY involves depositing your tokens into the Stability Pool to earn fees from protocol liquidations. This is a passive income strategy. Managing a Trove, however, is an active process of borrowing. You lock up ETH as collateral in a smart contract (the Trove) to mint the LUSD stablecoin. Trove managers must actively monitor their collateralization ratio to avoid liquidation, whereas LQTY stakers are the beneficiaries of these liquidations.