Stablecoin Lender’s Token $LQTY Surged Over 300% Year-to-Date on New Listings

The native token of stablecoin lender Liquity Protocol ($LQTY) has seen its price surge more than 300% year-to-date, partly thanks to new listings that have significantly boosted the cryptocurrency’s exposure and liquidity on the market.

According to market data, LQTY’s price has surged more than 90% over the last 24-hour period, shortly after leading cryptocurrency exchange Binance announced it was listing it in its Innovation Zone, with trading pairs matching it against BTC and USDT.

$LQTY, the native token of @LiquityProtocol, has risen over 90% in the past 24 hours after being listed on @binance’s innovation zone. pic.twitter.com/XVP1zCnMqa

— CryptoGlobe (@CryptoGlobeInfo) February 28, 2023

The exchange noted in its announcement that its Innovation Zone is a “dedicated trading zone where users are able to trade new, innovative tokens that are likely to have higher volatility and pose a higher risk than other tokens.

According to Binance, before users are able to trade in the Innovation Zone they must visit its web version to “carefully read the Binance Terms of Use” and complete a questionnaire. SYN, the exchange added, is a “relatively new token that poses a higher than normal risk, and as such will likely be subject to high price volatility.

The token, which is listed on other major cryptocurrency exchanges including Coinbase, has seen its price surge earlier in the month after the New York Department of Financial Services (NYDFS) ordered Paxos to stop minting Binance USD (BUSD).

As a result, LQTY is up over 300% year-to-date, to now have a market capitalization of $228 million, while having an on-chain total value locked of over $600 million.

LQTYUSD Chart via TradingView

According to Coinbase, Liquity is a decentralized borrowing protocol that allows users to obtain loans against Ether tokens used as collateral, with the interest rate determined by the borrower. In essence, Liquity provides loans to individuals in exchange for Ether tokens present with them.

The platform’s lending process works with loans being paid out using LUSD tokens, which are USD-pegged stablecoins that can be redeemed at any time against the underlying collateral at face value. This means that users can convert their LUSD tokens into traditional currency whenever they desire.

The platform imposes a minimum collateral ratio of 110% to ensure the safety of users’ funds. Users can lock up Ether on the Liquity platform, then issue LUSD to their own Ethereum address, and subsequently, transfer those tokens to any other Ethereum address as well.

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