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*Inflation figures shown here reflect circulating (market) inflation and may differ from a coin’s projected, policy (planned) inflation.

What is Liquity?

Liquity is a decentralized borrowing protocol that lets you mint the stablecoin LUSD by locking ETH as collateral. Loans are over-collateralized and accrue no ongoing interest, with a one-time borrowing fee and automatic liquidations managed by the Stability Pool; the system is governed by the LQTY token, which powers governance and incentive programs to keep the protocol solvent and aligned with DeFi users.

Why does Liquity have inflation?

Liquity has inflation because the LQTY token is minted and distributed as incentives to Stability Pool providers and protocol participants, rewarding them for maintaining system stability and participation in governance. This built-in emission increases the supply of LQTY over time.

How is Liquity inflation calculated?

Liquity inflation is calculated by comparing the circulating supply from one year ago to today’s supply. The percentage increase in supply over that period is the annual inflation rate. Learn more in our guide: What is cryptocurrency inflation?.

How is Liquity emission calculated?

Liquity emission refers to how new coins enter circulation, usually through mining or staking rewards. The emission rate depends on the project’s monetary policy and block reward schedule. Learn more in our guide: What is cryptocurrency emission?.

FAQ

We calculate our own inflation and emission data via our algorithms. You can learn more about how we derive our data in the learn page.

We encourage the usage of any data available on this website. You may use it for your personal or educational goals, but do not use it commercially unless you purchase the CryptoInflation API.

We strive to make the data as accurate as possible, but some blockchains have limitations on how precisely supply, inflation, and emission can be calculated. Moreover, the data on this website often has to be averaged and approximated, therefore the data can be a bit off sometimes.

Cryptocurrency emission and inflation aren’t inherently bad—they’re part of how many blockchains secure their networks and incentivize miners or validators. Moderate inflation can help distribute coins fairly and keep the network active, but excessive or poorly managed emission may dilute value and hurt long-term sustainability. You can learn more about how issuance affects price here.