Liquity · interactive mechanism simulation

ETH holders lock collateral into Troves and mint 0%-interest LUSD. A Stability Pool absorbs liquidations first; if it's ever empty, debt redistributes to remaining Troves. Redemptions let anyone swap LUSD for $1 of ETH from the riskiest Trove — a one-sided floor with no ceiling. Edit the parameters, or trigger a crash to watch liquidations cascade.
Borrowers ETH holders 0 open Troves Troves ETH collateral → mint LUSD avg CR: 200% min CR: 110% $LUSD supply: 0 market: $1.00 LQTY Stakers earn fees, no votes 0 ETH / 0 LUSD ETH Price Oracle $2,000 Stability Pool 0 LUSD deposited first line of liquidation defense Redeemers arbitrage LUSD → $1 ETH 0 redemptions Liquidation engine 0 Troves liquidated 0 redistributed (SP empty) SP absorbs debt, else spreads to remaining Troves
LUSD supply
0
ETH locked (TVL)
0 ETH
Stability Pool
0 LUSD
LUSD market price
$1.00
Troves liquidated
0
Parameters — edit me
$2,000
1.0%
0.6/s
0.3/s
60%
Controls

Illustrative simulation. Defaults reflect the researched Liquity mechanism (110% minimum collateral ratio, 0.5%–5% one-time borrowing fee, Stability-Pool-first liquidations with redistribution as backstop, always-open redemptions near $1). Starting balances, trade sizes and timing are randomized for visualization — not live onchain data. The "Simulate ETH crash" button is a labeled stress-test, not a historical event. Part of The Onchain Experiment Atlas.