How to open a Trove and borrow LUSD

Learn how to use Liquity protocol to generate LUSD against your ETH assets

Enter the Liquity Panel find it under Protocols:

Click Open Trove to begin. This will open the side panel where you can enter your Trove details.

Liquity similar to MakerDAO has a LUSD Debt Minimum, for Liquity Troves you must borrow up to 2000 LUSD and similarly you cannot owe the protocol less than 2000 LUSD. Liquity also takes adds some additional debt which is returned, see below.

Liquity limits each Ethereum address to one Trove. If you would like to have multiple Liquity positions; you can create additional DSA accounts.

Trove Details

Liquidation Reserve: The Liquity Protocol requires all troves leave a gas reservation of 200 LUSD this is only used in the case of a liquidation, this is returned when you close the Trove.

Borrow Fee: Liquity borrowers pay the borrowing fee upfront resulting in an interest free loan. This amount is added to your debt whenever you mint LUSD.

Total Debt: This is the total debt in the position including the Liquidation Reserve and the Borrowing Fee.

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