Liquity (LQTY): D-Score 32/100 — Centralized Leaning BlockIndex D-Score: 32/100 (Centralized Leaning). Liquity (LQTY) is a Layer 1 cryptocurrency using PoS consensus. Liquity (LQTY): Interest-free ETH-collateralized borrowing protocol on Ethereum with fixed-supply incentive token and multi-frontend ecosystem. Source: https://blockindex.ai/coin/lqty · Data by BlockIndex.AI · Updated 2026-06-19 D-Score breakdown (0-100, higher means more decentralized) Component: Score: Overall D-Score: 32: Node distribution: 0: Initial distribution: 0: Governance: 21: Age and history: 6: Autonomy: 5: Key facts - Layer: Layer 1 - Consensus: PoS (N/A) - Launch: Other (2021) - Founder: N/A - VC funded: No - Max supply: 100,000,000 - Circulating: 96,232,807 (96.2%) Market data (as of 2026-06-19) - Price: $0.2 - Market cap: $18.97M - 24h volume: $4.19M - 24h change: -4.82% · 7d change: -1.97% About Liquity is a decentralized lending protocol built on Ethereum that enables interest-free borrowing of the LUSD stablecoin against ETH collateral. Launched on mainnet on April 5, 2021, Liquity introduced an innovative, minimalist design that emphasizes security, low operational complexity and transparency. The protocol is governed by immutable smart contracts and is notable for separating monetary policy (LUSD) from governance and for distributing the LQTY token as an incentive and reward mechanism rather than as a traditional governance token with active on-chain proposal power. The project is supported by a legal entity referenced as Liquity AG in Switzerland, and the codebase is published publicly on GitHub, reflecting an open-source development model and community-maintained frontends. At its core Liquity provides a permissionless, non-custodial system for issuing the algorithmic, ERC-20 stablecoin LUSD against ETH collateral. Users open troves by depositing ETH and borrowing LUSD, while the Stability Pool and other incentive mechanisms help maintain system solvency and smooth liquidations. Liquity V2 — a major product cycle referenced across the combined summaries — brings iterative improvements to the protocol architecture, frontends, and user experience. The protocol relies on a decentralized ETH:USD price feed to determine collateralization ratios and trigger liquidations; security and reliability of oracle feeds are therefore central to the system's risk model. Liquity intentionally minimizes governance surface area: its contracts are designed to operate without an active on-chain governance framework, favoring a deterministic behavior model with upgrades and front-end integrations handled via off-chain coordination and developer releases. The ecosystem around Liquity comprises multiple community frontends, developer tools, and integrations that broaden access and liquidity. Official and community-hosted frontends (Liquity.app, app.lqty.io, DeFi Saver integration, floe.fund, trovezero.xyz and liquityv2.com) provide UI options for opening loans, interacting with the Stability Pool and migrating positions post-upgrade. LQTY itself is an ERC-20 token used primarily for protocol incentives and rewards (and historically to bootstrap ecosystem participation) rather than as a fully-fledged governance token; LUSD is the protocol's native stablecoin used for borrowing. Liquity's market exposure and on-chain activity have been tracked by aggregators such as DeFiLlama, CoinMarketCap and CoinGecko, and the project has been integrated into the broader DeFi stack with liquidity available on decentralized exchanges like Uniswap and Curve as well as major centralized venues. Tokenomics for LQTY are explicit and limited in scope: the token has a fixed maximum supply (100,000,000 LQTY) with circulating supply figures historically reported in the mid-90 million range. Initial distribution details such as premine and PIP percentages were not explicitly documented in the provided extracts; circulation and total supply data are available through token aggregators. Liquity does not employ a traditional block-reward mining model; instead, LQTY incentives and distribution mechanisms are executed via smart contract logic and protocol flows. The protocol emphasizes auditability and has public GitHub repositories for the BOLD (Liquity V2) codebase; audits and bug-bounty programs are part of the project’s security posture and were referenced around the V2 launch and subsequent patch cycle. Governance and organizational structure reflect an intentionally minimal, immutable approach: Liquity operates without a conventional on-chain DAO and was described in the sourced material as functioning without an active governance system, though Liquity AG is listed in site footers indicating an associated legal entity. As a result, governance actions, major releases and licensed deployments have been coordinated through maintainers and community contributors rather than via token-holder voting. Development activity accelerated during the V2 cycle (scheduled Jan 22, 2025 and launched Feb 12, 2025) with responsive remediation of a Stability Pool vulnerability discovered and fixed in 2025. Looking forward, Liquity’s roadmap emphasizes robust front-end integrations, licensed deployments to alternative execution environments (e.g., Saga EVM), continued monitoring of TVL and liquidity, and ongoing audits to maintain protocol safety while preserving the core minimalist, interest-free borrowing model. Links - Website: https://www.liquity.org/ - Whitepaper: N/A - GitHub: https://github.com/liquity/bold/ --- About the D-Score: BlockIndex.AI rates decentralization from 0 to 100 across node distribution, initial distribution, governance, age and history, and autonomy. Methodology: https://blockindex.ai/dscore