Bankless Loans

Liquity is a decentralized borrowing protocol that allows you to draw 0% interest loans against Ether used as collateral. Loans are paid out in LUSD - a USD pegged stablecoin, and need to maintain a minimum collateral ratio of only 110%. In addition to the collateral, the loans are secured by a Stability Pool containing LUSD and by fellow borrowers collectively acting as guarantors of last resort. Learn more about these mechanisms under Liquidations.

Liquity as a protocol is non-custodial, immutable and governance-free. Frontend Operators provide a web interface to the end-user enabling them to interact with the Liquity protocol. For that service, they will be rewarded with a share of the LQTY tokens their users generate.‌

LQTY rewards are being awarded to Stability Pool depositors and then proportionally shared between the users themselves and the Frontend Operator. How much each party gets is determined by the kickback rate which is set by the Frontend Operator and can range between 0% and 100%.‌ Setting a high Kickback Rate will make the Frontend Operator attractive to users, but offering a nice interface and additional functionalities might allow for a lower kickback rate while still garnering user interest.

In Season 1, LiveTheLifeTV started building the Bankless Loans App, our BanklessDAO frontend for Liquity, an interest-free loan protocol. We continued the coding work during Season 2 with some early-stage testing on Rinkeby.

During Season 2 we also decided to improve the UI/UX and add extra features. We submitted a new proposal for Season 3. We onboarded IsraelRex, a new designer in BDAO, who assisted us with creating a simplified design. Birdman, our main dev, worked full-time to finish off the coding work and got help from CompositeFellow and Activate-glacier-instinct.


  • In Season 3 we especially worked on updating the design for Bankless Loans.

  • Birdman continued the coding work on the Stability Pool functionality and LQTY Staking.

  • The domain was transferred to Birdman by Pradhuma and Birdman started a new Vercel.

We are now almost finished with the MVP and Season 4 (July 2022) will be the launch of Bankless Loans, after some more fine-tuning, bug fixing, and testing. BDAO will earn LQTY rewards generated by the ‘Bankless Loans’ App. The agreement was that LiveTheLifeTV has an 80/20 split with BanklessDAO but we have decided to allow Bankless Loans to keep the full 100%. It's been exciting to see our first DeFi app come to life and that in itself is the biggest reward.

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