What is Liqwid v2?

Cardano's largest lending protocol just got a 10x boost in transaction speeds!

Since launching on mainnet in Q1 2023, Liqwid has rapidly become the largest and most-used lending protocol on Cardano. Its fully aggregated liquidity model is more capital-efficient and flexible compared to peer-to-peer or partially aggregated models. This allows borrowers to pay lower interest fees and repay their loans anytime, without fixed repayment dates. Lenders also earn interest on their collateral.

Liqwid v2 introduced advanced on-chain risk control features like borrow caps and supply caps, which limit how much can be borrowed or deposited in each market. These measures help manage protocol risk effectively. The protocol can also isolate assets, allowing it to define specific debt trading pairs for a given collateral. This means every asset can have customized risk parameters, tailored based on its quality.

Beyond risk management, Liqwid v2 included a full upgrade of the app’s off-chain architecture and APIs. Newly used tools and techniques now allow users to perform lending and borrowing actions in seconds. These tools also improve how the app reads Cardano blockchain data and builds transactions, leading to a much smoother user experience.

Liqwid’s backend infrastructure includes custom-built systems designed for performance, monitoring, and redundancy. These systems support the app, batching and oracle functionalities and also includes back-end alert and control mechanisms.