HLiquity

HLiquity is a decentralized borrowing protocol that enables users to take interest-free loans which are overcollateralized, backed by HBAR, and paid out in HCHF, a notoriously reliable stablecoin pegged to the Swiss Franc.

## Overview HLiquity is a decentralized borrowing protocol built on the Hedera blockchain that allows users to take out interest-free loans secured by HBAR collateral. Unlike traditional lending protocols that charge interest, HLiquity operates on a fixed borrowing model where users deposit HBAR as collateral and receive HCHF—a stablecoin pegged to the Swiss Franc—in return. The protocol eliminates the variable interest rate mechanism entirely, replacing it with a one-time borrowing fee and maintenance of a minimum collateralization ratio. This approach appeals to users seeking predictable bor