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Liquity is a decentralized borrowing protocol that uses a unique stability mechanism called the Stability Pool to maintain the value and stability of its stablecoin, LUSD. Liquity enables collateralization below 100%, making it more capital-efficient and cost-effective than other lending platforms. Its design is aimed at minimizing liquidations and over-collateralization requirements, allowing users to earn rewards and governance rights in the network. Liquity is designed to be trustless, censorship-resistant, and community-driven.