Lending Protocol Liquidity Now Live On Ethereum Layer 2 Aztec Network

Users can borrow stablecoin LUSD against ETH without the need to pay interest.

Liquidity Protocol on Aztec provides two collateralization ratios at 275% and 400% and has no minimum loan size.

The collateral ratio of Aztec troves fluctuates with the price of ETH. When users deposit ETH, they take on debt with the current collateral ratio.

For example, if ETH falls a lot in price, the ratio of a bridge might be 150% even though it was opened at 275%.

Liquity Protocol has been engineered to generate unprecedented liquidity of assets secured against Ethereum as collateral. The native stablecoin token of the protocol is LUSD, and the inherent value of LUSD is comparable to that of the US Dollar. At face value, the LUSD token LUSD is fully redeemable against the value of the underlying collateral assets on the Liquity.org platform.

Aztec is a ZK-Rollup, generally, ZK-Rollups work in a way that aggregates a large number of transactions into a Rollup block and generates a concise zero-knowledge proof for that block. These zero-knowledge proofs are simply a way of proving something to be true without having to disclose information.

These proofs are then verified on Ethereum without re-transactions, which enables users to experience cheaper transaction fees and higher transaction speeds.

Aztec Network offers scalability and provides a private transaction solution on Ethereum. Transactions on the blockchain are always public, so if users don’t want their transactions to be tracked, Aztec is the solution.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Source