The 3 Different Levels of Liquid Loans (Super Important Distinctions)

Liquid Loans is not one singular entity.

It actually has three different levels, and understanding the distinction between the three categories can help you understand the nature of True DeFi.

Let’s start with the Liquid Loans Code.

Liquid Loans: The Code

If you’re going to refer to one entity as “Liquid Loans”, then you should refer to the code.

The Liquid Loans code is the product. It is what enables the lending, the staking, the stability providing, the generation of USDL and LOAN, and the redemptions.

The code exists on PulseChain, it is immutable, governance-free, and there is only one iteration of it.

No matter who you are, the Liquid Loans code acts the exact same and operates in accordance with the rules of the protocol.

The code will exist and function regardless of whether the founders, the team, or the front end are present and operational.

Liquid Loans: The Organization

The Liquid Loans organization is a group of people from all over the world who came together to build something cool.

The team is composed of founders, software developers, web designers, social media experts, writers, digital marketers, graphic designers, and more.

The team works out of passion for the community and not out of any expectation to drive profit.

Once the Liquid Loans code is deployed, it will run the exact same way regardless of what the team does.

The whole point of ‘True DeFi’ is that you do not have to rely on a central team to manage the protocol.

Rather, the protocol does what it is supposed to do even if the team is not active.

Liquid Loans: The dApp/Front End

The Liquid Loans dApp/Front End is a website that interacts with the Liquid Loans code.

The dApp was created by the Liquid Loans organization with the intention of being the most user-friendly and enjoyable experience possible.

However, the Liquid Loans front end is not the only one that interacts with the code.

There will be many front ends for Liquid Loans, which is an important component of ‘True DeFi’.

If the Liquid Loans dApp goes offline, there will be other front ends, created by individuals and groups all over the world, which will be available.

It is important to understand that while dApp and front ends can be changed, the Liquid Loans code CANNOT EVER be changed.

In addition, front ends and dApps can be malicious, using misdirection to gain token allowances and drain your wallet.

Front ends can also be incompetent. For example, a button which is intended to facilitate a collateral ratio of 1100%, could be fat-fingered to be 110%.

Therefore, make sure you vet and trust the front end you are using.