# Liquity Liquity is a new decentralized borrowing protocol designed to generate unprecedented liquidity against ETH as collateral! ![Issuing Liquidity interest-free was never so easy and smooth!](https://instadapp-labs.intercom-attachments-1.com/i/o/466165011/db45b9533de59d502c8576a9/1-i4wlA3hTa9ujxifF_Rcvzw.png) ### What is Liquity? Liquity allows you to draw 0% interest loans against Ether used as collateral. Loans are paid out in LUSD — the protocol’s native stablecoin which is pegged to the US Dollar and need to maintain a [minimum collateral ratio ](https://docs.liquity.org/faq/borrowing#what-is-the-minimum-collateral-ratio-mcr-and-the-recommended-collateral-ratio)of only 110%.\ \ Also, the loans are secured by a LUSD [Stability Pool](https://docs.liquity.org/faq/stability-pool-and-liquidations) and by fellow borrowers collectively acting as guarantors of last resort. Liquity as a protocol is noncustodial, immutable, and governance-free. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://guides.instadapp.io/protocols/liquity.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.