LQTY is the original representative of Liquity, a decentralized and stable lender that resists censorship. On Monday, British regulators ordered Paxos to stop forging its centralized digital currency, BU.S, which is pegged to the dollar. After that, the price of LQTY soared.

According to TradingView, a data chart service, LQTY tokens rose 45% to $1.07 in six months, a larger one-day percentage increase for at least a year.

The increase is likely to come from Paxos-BU.S. The incident has raised concerns that a broader centralised and stable ecosystem (USDC, which includes Circle) will be severely hit by regulation, and appears to be like Liquity's LU.S. The importance of this decentralized and anti-censorship stable system.

Ignus, a DIFI researcher under the pseudonym, told WJB: "the dollar validates the need for decentralization and anti-censorship stability. This is, of course, Maker and Liquity's LU.S. Mission. The Maker's EndGame plan foresees a tough crackdown on login passwords and [real world property] by regulators, so it is about to get DAI to curb censorship. The same important task promotes LU.S. Smooth, but its approach is focused on minimal governance and ETH as the only collateral, "pseudonym DEFI researcher Ignus told WJB."

Liquity is an interest-free loan that gives at least 110 per cent of the collateral to ETH as collateral based on the etheric place agreement. The loan is repaid in the form of a stable loan of US $1 linked to the US dollar, and the lender only needs to pay a small amount of the loan completely free of charge. The cost of redemption and lending is adjusted according to the optimization algorithm. LQTY is the reward dynamic password established by this agreement, which is committed to encouraging customers, the previous long-term stable service providers-- the first line of defense to ensure the capital adequacy ratio of the system.

The protocol operates similar to the MakerDAO dual dynamic password entity model. However, the difference is that Liquity does not have a social governance system. Therefore, the major shareholders of LQTY cannot jeopardize management decisions. Complete decentralization also means that the original design of the agreement cannot be changed to introduce centralized smooth coding as a new collateral. Recently, centralized smooth coding has been reviewed by regulators.

More crucially, Liquity does not run its own Internet pages, and its blockchain smart contracts can be viewed in front of several third parties. As a company, Liquity AG does not operate in front of itself, which makes the system software more decentralized and censor-resistant, the website said. Therefore, if customers want to set up loans, savings, etc., they must use the first one given by a third party.

This feature makes Liquity's LU.S. It can withstand censorship and brings advantages over MakerDAO to the agreement. As a result, it is reasonable for some traders to regard LQTY rather than MakerDAO's MKR tokens as a haven of mind against regulatory attacks.

Lewis Lewis Harland, portfolio manager at Decentral Park Capital, said: "it is widely believed that the London dollar encouraged by ETH collateral is more likely to withstand the pressure of tightly regulated work in the sales market."

The renewed stereotype of smooth login passwords encouraged by decentralized login passwords is evidence of rapid change narration in the login password market. In May last year, with the decentralization of Terra's algorithm and its dramatic collapse in the college of science and technology, the coin had long been left in the cold.

On Monday, LQTY rose by more than 40%. MKR rose 12%. TRX of Peregrine Tron rose 3%. TRON is a blockchain intelligent contract service platform that should maintain a real government procurement process and censorship. Last year, a decentralized dollar peg was launched to stabilize the dollar.

Crypto Twitter is cheerful that if regulators tighten penalties on centralized dollar pegs, Liquity and other agreements to give decentralized stable coins will continue to be brilliant.

One Defi investor wrote on Twitter: "I don't see why the total market capitalization of the dollar against the dollar is not easy to return to the level of $1 billion, especially when Gensler mainly behaves like a child with a small pistol in his hand. Dollar LQTY is my favorite mid-and late-stage strategy. "