DeFi

Liquity (LQTY) Signals

Liquity currently has a Risk Wave score of 40/100 (Patience Zone). Lower scores generally indicate better long-term accumulation conditions, while higher scores suggest elevated downside risk and a more defensive position-sizing approach.

$0.2331+5.1% (24h)

Risk Wave

Patience Zone

Risk Wave

40/100

Patience Zone

Fear & Greed

Greed

Coverage

DeFi

LQTY · signal stack

Coverage

DeFi

LQTY · signal stack

Risk Wave Analysis

Liquity's Risk Wave score is currently 40/100 — placing it in the Patience Zone.

Liquity is trading near its long-term trend. This zone suggests holding existing positions and monitoring for a clearer signal before adding.

Risk Wave measures how far LQTY's price deviates from its long-term trend. Learn more →

Market Context

Fear & Greed

59/100

Greed

Market Cap

$23.0M

About Liquity

Governance token for the Liquity protocol, an interest-free ETH borrowing system backed by LUSD stablecoin.

Zero-interest borrowing protocol issuing LUSD stablecoin
Minimum 110% collateral ratio with ETH-only collateral
Fully decentralized with immutable smart contracts and no governance

Investment thesis: Liquity offers the most decentralized stablecoin lending protocol with zero ongoing interest and immutable contracts — no governance means no attack surface from governance manipulation. LUSD is one of the few truly decentralized stablecoins.

Key risks: Immutable contracts cannot be upgraded to fix issues or add features. ETH-only collateral limits capital efficiency and user flexibility. LUSD has struggled to maintain peg stability in low-demand periods.

Frequently Asked Questions

What are Alpha Factory's Liquity signals?

Alpha Factory analyzes Liquity using two core systems: Risk Wave, which scores the current risk of holding LQTY from 0 (lowest risk) to 100 (highest risk), and Altcoin Rules, which weighs 8 market indicators to produce an overall risk assessment. These signals help investors time their entries and exits without relying on emotion.

What is Liquity's current risk score?

Liquity's risk score is calculated in real-time using the Risk Wave indicator. A score below 30 indicates an Accumulation Zone (historically favorable entries), 30-70 is a Patience Zone (hold and monitor), and above 70 is a Danger Zone (consider taking profits). The score updates regularly based on LQTY's price relative to its long-term moving average.

How does Alpha Factory analyze Liquity?

Liquity is analyzed using Alpha Factory's two core frameworks: Risk Wave (price-trend risk scoring) and Altcoin Rules (8-indicator market assessment). These quantitative tools remove the guesswork from DeFi investing by providing clear risk zones and actionable thresholds.

Is Liquity a buy or sell right now?

The answer depends entirely on your goals and risk tolerance. What Alpha Factory provides is the data to make that decision intelligently: Risk Wave shows whether LQTY is in a high-risk or low-risk zone, and Altcoin Rules scores the overall market environment. Premium members also see exactly how Menno is positioned in Liquity. Upgrade to Premium to access the full picture.

How does Risk Wave work for Liquity?

Risk Wave measures how far Liquity's current price has deviated from its long-term moving average. When LQTY is trading well below trend, the score is low (Accumulation Zone) — historically, these have been favorable entry points. When price stretches far above trend, the score is high (Danger Zone) — signaling that the risk of a correction has increased. The score is calculated using a smoothed moving average calibrated to LQTY's asset age.

This page is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk including the potential loss of all invested capital. Prices from CoinGecko. Always do your own research before making investment decisions.

Liquity (LQTY) Signals

Risk Wave Analysis

Market Context

About Liquity

Frequently Asked Questions

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