Liquidify is a decentralized smart contract protocol designed to improve the liquidity and growth potential when it comes to long-tail crypto assets investing by using a mechanism inspired by traditional finance to operate with non-performing loans.
By using the protocol, holders of long-tail crypto-assets can easily collateralize them by using Liquidify asset pools which are then synthesized by the liquidity accelerator into a fixed amount of tokens: Liquidity Accelerator Tokens (LAT) and Liquidify Tokens (LFY).
Liquidify is Helping to Power an Important Sector
The cryptocurrency ecosystem has seen 2021 as one of the best years in terms of both adoption and capitalization value as millions of individual and institutional investors jumped into the cryptocurrency, NFT, Decentralized Finance (DeFi), and blockchain markets.
With mainstream media and financial institutions paying close attention to the evolution of the crypto ecosystem, new projects continue to emerge to provide new use cases and cover the lackings of existing protocols, creating a whole new set of opportunities for interested parties.
While Centralized Exchanges used to be the go-to option for crypto investors, the advent of DeFi has given place to decentralized financial protocols that have facilitated the launch and exchange of the digital assets introduced by these projects but there are there multiple barriers that need to be overcome.
Crypto assets with low liquidity, low trading volume, and low market capitalization (long-tail crypto assets) have represented a challenge for crypto investors due to the difficulty they present at the time of trading them, while still representing huge potential in the crypto market.
The DeFi ecosystem has grown exponentially over the past year but no single solution has been created to address this concern. However, a new project was announced earlier in February of 2021 that was designed to capitalize on the potential of long-tail crypto assets: Liquidify.