• Liqwid Labs has announced the successful launch of Liqwid’s DJED market and the addition of qDJED as collateral for the ADA market.
• SPOs are requested to update their liquidation bots which will liquidate a single market only.
• Borrowers on Liquid Finance can open perpetual loans in an overcollateralized manner, with variable rates of interest based on the current market utilization.
Liqwid Finance Launches DJED Market
Liqwid Labs has announced the successful launch of its Cardano-based Liqwid Finance’s DJED market and the addition of qDJED as collateral for the ADA market. The front end is already live and Liqwid Labs will be monitoring its infrastructure for a smooth rollout.
Liquidation Bots Updated
In order to ensure a smooth experience, SPOs have been requested to update their liquidation bots to the latest version available. These bots will continuously monitor LTVs (Loan to Value) ratios across all markets, and liquidate any loan that breaches its respective max LTV threshold. Additionally, they will be providing a 10% bonus if liquidity is needed in times of extreme volatility.
Perpetual Loans Offered
Borrowers on Liquid Finance can open perpetual loans in an overcollateralized manner with variable rates of interest based on the current market utilization being monitored by these liquidation bots. This platform also offers decentralized interest rate curves for decentralized lending and borrowing on Cardano blockchain network.
Risk Parameters for DJED Market
In order to reduce risk associated with using qDJED as collateral, Liqwid Labs has set some parameters such as maxLTV (75%), Liquidation bonus (10%) and Liquidation threshold (80%).
Conclusion
The Cardano ecosystem is witnessing fresh developments by some existing players like Liqwid finance which helps users access decentralized lending & borrowing platforms while having control over risk parameters such as maxLTV, Liquidation Bonus & Thresholds etc..