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Liquid V3 turns a single deposit of ETH or USDC into two complementary positions. First, the funds are wrapped into a Mix-Yield Token (MYT) that earns yield across a diversified set of strategies curated by the Liquid DAO. That same collateral unlocks a credit line, allowing users to mint synthetic lAssets, LETH or LUSD, worth up to ninety percent of the deposit.
The redesigned Transmuted accepts these lAssets and, on a fixed schedule, returns MYT one-for-one. This mechanism keeps lAssets close to price parity with their underlying assets and created predictable, bond-like yield opportunities for anyone who accumulated lAssets below face value.
Where the Platform Fits
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DAO Treasuries – Raise operating capital without liquidating long-term holdings. DAO’s can mint lAssets, exchange them for their required spending currency, and let the vault yield repay their debt over time.
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Yield Strategists – Loop assets for higher leverage. These users can recycle borrowed lAssets back into their vault positions, compounding exposure as high as practical leverage allows, all without facing variable interest rates.
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Liquidity Providers – LPs can pair lAssets with another token that tracks the same price (for example, LETH with frxETH) and eliminate impermanent-loss risk as both sides of the pool move in tandem.
Core Features
| Feature | Purpose |
|---|---|
| Liquid Vault (ERC-4626) | Aggregated yield for each base asset on every supported chain |
| Mix-Yield Token (MYT) | Tokenised basket of yield strategies, which can be unwrapped for the underlying assets at any time |
| Transmuter | Fixed-duration redemptions that stabilise lAsset prices and create predictable return opportunties |
| Self-repaying CDP | Debt is automatically retired by vault yield and scheduled redemptions |
Why Integrate
Integrators gain a capital efficient way to unlock liquidity, a single-token gateway to competitive ETH and USD yields, and access to a growing synthetic-asset economy. Projects that integrate MYT or accept lAssets as collateral benefit from higher total value locked, simplified liquidity-pool management thanks to the absence of impermanent loss on like-for-like pairs, and joint marketing across the Liquid ecosystem.
Who Benefits Most
End users seeking passive yield, money-market protocols in search of high-quality collateral, vault curators adding new strategies, DAO treasuries managing runway, leverage-oriented yield farmers, and liquidity providers who want prices on both sides of a pool to move together.
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