The complete guide to making money with Liquity (LQTY)

What makes Liquity so innovative?

How can you make money with Liquity today?

Method 1: Borrow LUSD against ETH

Method 2: Stake your LUSD in the stability pool

Method 3: Stake LQTY

Method 4: Become a Uniswap ETH-LUSD LP

Method 5: Liquidate Positions

Method 6: Redemption Arbitrage

Risk mitigation with Liquity

  1. First, you can just take out a loan initially at a high collateral ratio. This is very straightforward and works very well, especially during the ETH bull market as collateral ratios continually increase with the price of ETH.
  2. Additionally, you can deposit more ETH into your position to raise your collateral ratio. Keep in mind that you will have to pay gas costs to do this, which may get high during an ETH crash.
  3. Finally, you can also pay off part of your debt in LUSD. Again, it’s important to keep in mind that you will have to pay gas costs to do this. Additionally, you aren’t allowed to have a portfolio with a debt under 2000 LUSD, so you wont be able to fractionally pay off your debt below this number. However, as long as your debt is above 2000 LUSD, you can pay off whatever amount you want to down to 2000 LUSD. Once you hit 2000 LUSD, you must pay off the entire debt at once if you want to pay off your debt.

Some closing thoughts

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