Interest-Free Stablecoin Lender Liquity’s LQTY Token Surges 45% as Regulator Goes After Paxos’ BUSD

The protocol runs a two-token model like MakerDAO. The difference, however, is that Liquity doesn’t have a governance system. Therefore, large holders of LQTY cannot influence decision-making. The fully-decentralized setup also means the protocol’s original design cannot be altered to introduce centralized stablecoins, which have recently come under regulatory scrutiny, as new collateral.