The protocol runs a two-token model like MakerDAO. The difference, however, is that Liquity doesn’t have a governance system. Therefore, large holders of LQTY cannot influence decision-making. The fully-decentralized setup also means the protocol’s original design cannot be altered to introduce centralized stablecoins, which have recently come under regulatory scrutiny, as new collateral.
Stablecoin Lender Liquity’s LQTY Token Surges 45% as New York Regulator Goes After Paxos’ BUSD
