About this explorer

The Rails Liquity V1 explorer shows every Trove on Ethereum, whether still open or closed, and the full history of each one. It also shows the system as a whole: its total collateral ratio, its Stability Pool and the queue of Troves that redemptions reach first.

How it works

• Liquity V1 is a lending protocol where a borrower locks ETH in a Trove, a loan held by one wallet, and draws LUSD, a dollar stablecoin, against that collateral. Drawing means the protocol mints (creates) new LUSD, which holds near a dollar because anyone can swap it for $1 of ETH.
• There is no interest. A borrower pays a one-time fee each time they draw LUSD, and the debt stays at the amount drawn.
• The collateral ratio of a Trove is the value of its ETH divided by its debt. A liquidation closes a single Trove whose ratio falls below 110%, so the debt is cleared while the ETH still covers it.
• Recovery Mode is the whole system's line: when all Troves together fall below 150%, stricter limits apply. A redemption swaps LUSD for $1 of ETH, so if LUSD trades below $1 anyone can buy it and redeem it for a profit, which pushes the price back up.
• Liquity V1 has one set of rules for every Trove, and the borrower sets no interest rate. Redemptions reach the Troves with the lowest collateral ratio first, and the Stability Pool, which holds LUSD that depositors supplied, pays off the debt of liquidated Troves in exchange for their ETH.

Glossary

Trove

: A Trove is one borrower's loan, made of the ETH they deposited as collateral and the LUSD they owe against it. Opening a Trove is how a borrower draws LUSD. One wallet holds one Trove at a time, and each new Trove opened by the same address after it closed one is listed separately on this explorer. Docs: Borrowing FAQ

Wallet

: A wallet is an account address on Ethereum, which holds ETH and tokens and signs the transactions that open, change or close a Trove. Docs: Liquity V1 FAQ

Collateral

: Collateral is the ETH a borrower locks in a Trove as security for the loan. If the loan is not safely covered, the protocol sells the collateral to clear the debt. Docs: Borrowing FAQ

LUSD

: LUSD is the dollar stablecoin that a Trove mints, which means the protocol creates new LUSD when the borrower draws the loan. Anyone can swap LUSD for $1 of ETH from the Troves, and this keeps its price near a dollar. Docs: Liquity V1 FAQ

Collateral ratio

: The collateral ratio is the dollar value of a Trove's ETH, at the protocol's price, divided by its LUSD debt. A single Trove whose ratio falls below 110% can be liquidated. Docs: Borrowing FAQ

Liquidation

: A liquidation closes a Trove whose collateral ratio has fallen too low, so that the debt is cleared before the collateral stops covering it. The Trove's ETH goes to the Stability Pool depositors. If the pool is empty, the Trove's debt and ETH are spread over all the other Troves in proportion to their collateral, which raises their debt. The borrower keeps the LUSD they drew, and the Trove's ETH is taken. Docs: Stability Pool and liquidations FAQ

Stability Pool

: The Stability Pool is a pool of LUSD that anyone can deposit into. When a Trove is liquidated, the pool's LUSD clears its debt and the depositors receive its ETH, worth up to 10% more than the LUSD they gave up. Docs: Stability Pool and liquidations FAQ

Redemption

: A redemption swaps LUSD for ETH at $1 per LUSD. If LUSD trades below $1, anyone can buy it and redeem it for $1 of ETH, which pulls its price back up. The LUSD cancels debt in the Troves with the lowest ratio first, and ETH of equal value leaves them to the redeemer. Docs: Redemptions FAQ

Recovery Mode

: Recovery Mode is the state the system enters when the total collateral ratio of all Troves taken together falls below 150%, whereas a single Trove is liquidated below 110%. Troves below the system ratio can then be liquidated, and withdrawals and new debt are restricted until the ratio recovers. Docs: Recovery Mode FAQ

Fees

: Liquity charges a one-time borrowing fee on each draw (0.5% to 5%) and a redemption fee that redeemers pay. Both start from the base rate, which rises after redemptions and decays back toward zero over time. Docs: Borrowing FAQ, Redemptions FAQ

Liquidation reserve

: When a Trove opens, 200 LUSD is added to its debt and set aside in a reserve pool, which Liquity calls the gas pool because it pays for liquidation costs. Closing the Trove repays the debt less 200 LUSD and burns the reserve, which means destroying it, and a full redemption burns it too. A liquidation pays the reserve to the liquidator, the address that triggers the liquidation. Docs: Borrowing FAQ

LQTY

: LQTY is Liquity's secondary token, which captures the fee revenue the system generates and rewards early adopters. Holders can stake it, and Stability Pool depositors earn it. Docs: Liquity V1 FAQ

Search takes a wallet address. Status filters by Open, Closed or Liquidated. Liquidations (Liquidated before) keeps Troves that were liquidated at some point, and Redemptions (Redeemed before) keeps Troves that were redeemed against at some point. Sort options are Recent activity, Collateral, Debt and Ratio.

Tap the (i) beside any figure to see where it comes from. Inside, the ? explains that kind of event in general.