Overcollateralized borrowers deposit funds into Liquity and receive LUSD stablecoin.

Liquity is a non-custodial stablecoin protocol built on Ethereum. Liquity was founded by Robert Lauko & Rick Pardoe and launched in 2020.

LQTY tokenholders own & govern the protocol. They currently take all of the total borrow & redemption fees paid by borrowers (revenue). Liquity’s investors include Lemniscap, Polychain, Alameda Research, etc.

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Liquity

# Liquity Maximum token supply Methodology

## 1. Overview

The token supply maximum metric for Liquity represents the protocol-defined maximum number of LQTY tokens that can ever exist. This is a static value that was established when the LQTY token was designed and deployed. The metric answers the question "What is the theoretical maximum supply of LQTY tokens?" and serves as a key reference point for understanding the token's scarcity and economic model.

## 2. Data sources

This metric relies on static protocol specifications rather than dynamic blockchain data:
- **Token contract specifications**: The maximum supply parameter defined in the LQTY token contract
- **Protocol documentation**: Official Liquity protocol documentation specifying token economics
- **Smart contract deployment records**: Historical records of when the LQTY token was first deployed
- **Protocol whitepaper**: Original documentation establishing the 100,000,000 token maximum supply

## 3. Step-by-step calculation

### Component A: Maximum supply specification
- **Purpose**: Establishes the hardcoded maximum token supply for LQTY
- **Logic**: The maximum supply is set to exactly 100,000,000 LQTY tokens, which was defined in the original protocol design. This represents the theoretical maximum number of tokens that can ever be minted or exist in circulation
- **Key fields**: `token_supply_maximum` is set to the fixed value of 100,000,000 tokens

### Component B: Launch date specification
- **Purpose**: Defines when the LQTY token became available and this metric became relevant
- **Logic**: The launch timestamp is set to April 5, 2021 at 00:00:00 UTC, marking the date when the LQTY token was first deployed and made available. The timestamp grain is set to 'day' to indicate this is a daily metric
- **Key fields**: `timestamp` captures the launch date, `timestamp_grain` specifies daily reporting frequency

### Final aggregation
- **Time series generation**: The finalize macro generates a complete daily time series from the launch date forward, ensuring consistent data availability for analysis
- **Fill forward strategy**: The maximum supply value remains constant at 100,000,000 tokens for every day since launch, reflecting that this is a fixed protocol parameter that doesn't change over time
- **Data standardization**: The finalize macro applies standard formatting and metadata tagging to ensure consistency with other Token Terminal metrics
- **Final calculation**: The final metric value is simply the constant 100,000,000 LQTY tokens repeated for each day in the time series, representing the unchanging maximum possible token supply as defined by the protocol

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Maximum number of tokens that can exist under the current token economics.

LiquityLQTY

Maximum token supply

Maximum token supply

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