What is Liqwid v2?
Cardano's largest lending protocol just got a 10x boost in transaction speeds!
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Cardano's largest lending protocol just got a 10x boost in transaction speeds!
Last updated
Was this helpful?
Overview of all protocol improvements and features as part of Liqwid v2: Liqwid v1 marked the first ever deployment of pooled liquidity market smart contracts on Cardano mainnet. Users participate in the protocol as lenders or borrowers. Lenders supply liquidity into a market to earn interest on deposits, borrowers are able to open perpetual loans backed by ADA and other Cardano Native Tokens (CNTs). Since mainnet launch in Q1 2023 Liqwid has quickly grown to become the largest and most utilized lending protocol on Cardano. The protocol's fully pooled liquidity model is significantly more capital efficient and flexible than other peer-to-peer or partially pooled lending protocols meaning borrowers pay less in interest fees to open loans on Liqwid and can repay their loan at anytime with no fixed repayment date. Onchain risk control features implemented in Liqwid v2 include borrow caps and supply caps which limit the amount of assets that can be deposited into a market or borrowed from a market with the goal of effective risk management. In addition to caps the introduction of isolation mode and efficiency mode have been implemented allowing for fine grained control of collateral types allowed in a given markets and enabling higher collateral levels for correlated assets. In addition to onchain features Liqwid v2 brought a complete overhaul of Liqwid's offchain used to query data and build transactions in the app and API. With the addition of offchain libraries such as Aqueduct, Tap and Pond users can now access super fast transaction speeds for completing market actions in the v2 app. The introduction of these offchain libraries for querying global market state data and building transactions enables subsecond lending and borrowing transaction speeds and relieves a major painpoint of the v1 app in the speed to build and submit market actions. Another significant component of Liqwid v2 was the upgrade to Liqwid Infra v2 which included large scale improvements to the performance, monitoring and redundancy of our server infrastructure used to power the Aqueduct, Tap and Pond offchain libraries plus the Liqwid batching and oracle engines.