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🚨𝐋𝐚𝐬𝐭 24h for Story PiperX Badge!🚨 The eligibility snapshot window is closing in 24 𝐡𝐨𝐮𝐫𝐬. These badges will NEVER be earnable again, marking your unique support in our community! Come to https://t.co/y1Fp01ZnhX to participate the program for Firsrt and Best DEX on Story! Let’s Pipe OG!
We’re thrilled to have received an exclusive licence from Liquity AG required to deploy the friendly fork of @LiquityProtocol V2 on @berachain under the Beraborrow brand.
This gives us the exclusive rights to launch their codebase on Berachain and adapt it for Proof of Liquidity (PoL), setting the stage for the ultimate borrowing experience alongside our protocol.
While Liquity V1 was successful, it had some limitations:
1. Redemptions: Maintaining the LUSD peg during low demand was challenging. Users could redeem LUSD 1:1 against the lowest collateral ratio, stabilising the peg but causing unexpected position deleveraging.
2. No Interest Rates: The lack of interest rates attracted borrowers but made balancing liquidity difficult. There was no way to incentivise liquidity during stable market periods.
These challenges paved the way for Liquity V2, which Beraborrow is now customising for the Berachain ecosystem.
From day one, Beraborrow built on Liquity V1’s foundation while improving:
- Redemption Management
- Stability Pool Arbitrage
- Brime Den Redemptions
- Introduction of Interest Rates
- Support for Multiple Collateral Types (assets and LPs)
What does Liquity V2 bring to Beraborrow?
- User-Set Interest Rates
- Enhanced Redemption Mechanics
- No Recovery Mode
To learn more, check out our recent article.
➡️ https://t.co/A7jNRekDEh