Last updated
Last updated
Wasabix is thrilled to have this opportunity to collaborate with Liquity, a insanely fast growing lending protocol with low collateral ratio and zero interest. Wasabix is proud to offer Liquity Strategy. with auto-compound function.
Liquity Strategy is similar to other strategies with add-ons. The add-ons is that Wasabix's frontend app offers full functionality of Liquity with 100% .
We've implemented Liquity's functionality into Wasabix's frontend app. With Liquity Trove and Vault, users are able to -
Liquity Trove - Deposit ETH and borrow LUSD with 100% in Wasabix's frontend app. You may also repay or withdraw your debt, or close your Liquity Trove.
Liquity - Deposit LUSD to Liquity Vault to earn compounded APY. (Details in below)
Liquity - Borrow $waLUSD.
Stake $waLUSD to maximize your yield reward.
You will see there are Liquity Trove, Liquity Strategy and Liquity Minter.
Liquity Trove is a place where you maintain and manage your loan. Wasabix builds the frontend for them and you are interacting with Liquity's smart contracts directly.
WasabiX does not have the access to Liquity Trove. All ETH collateral are controlled by Liquity.
According to their description:
Important: If you already have LUSD, you may go to Liquity Strategy and deposit LUSD to receive compounded yield.
No. The kickback rate of Wasabix is 100%. It means that Wasabix users would receive 100% of their earned rewards while the frontend receives the remaining 0%.
According to the mechanism from Liquity, over time Stability Providers lose a pro-rata share of their LUSD deposits, while gaining a pro-rata share of the liquidated collateral. However, because Troves are likely to be liquidated at just below 110% collateral ratios, it is expected that Stability Providers will receive a greater dollar-value of collateral relative to the debt they pay off.
Once Wasabix received collateral asset from Stability Pool, it will automatically swap to LUSD to maintain user's total amount of LUSD. The extra LUSD will also be pushed back to the pool to start compound the yield.
While liquidations will occur at a collateral ratio well above 100% most of the time, it is theoretically possible that a Liquity Trove gets liquidated below 100% in a flash crash or due to an oracle failure. In such a case, you may experience a loss since the collateral gain will be smaller than the reduction of your deposit.
If LUSD is trading above $1, liquidations may become unprofitable for Stability Providers even at collateral ratios higher than 100%. However, this loss is hypothetical since LUSD is expected to return to the peg, so the “loss” only materializes if you had withdrawn your deposit and sold the LUSD at a price above $1.
Please note that although the system is diligently audited, a hack or a bug that results in losses for the users can never be fully excluded.
Yes.
"Each Trove is linked to an Ethereum address and each address can have just one Trove. If you are familiar with Vaults or CDPs from other platforms, Troves are similar in concept. Troves maintain two balances: one is an asset (ETH) acting as collateral and the other is a debt denominated in LUSD. You can change the amount of each by adding collateral or repaying debt. As you make these balance changes, your Trove’s collateral ratio changes accordingly. You can close your Trove at any time by fully paying off your debt." - from
Liquity Strategy is the like other strategies in WasabiX. You may deposit LUSD to the Strategy. Once deposit, the deposited assets are deposited into the Liquity . The yield is harvested from the stability pool. Harvested yield pays down the global debt in the system, reducing all depositor's debt. If you have deposited assets but not borrowed $waLUSD, the yield will credit your account with $waLUSD. We will constantly execute auto-compound in the Vault once LUSD falls into Collector.
Once you deposited LUSD into the vault, the deposited assets are deposited into the Liquity . Wasabix will implement a monitoring system to constantly check if there's a flash crash coming up or the average CR(Collateral Ratio) is about to below 110%. Wasabix will execute the recall function to protect Wasabix's user from losing money when the system meets conditions in above.
Please follow the to learn how to interact with Liquity in Wasabix.