Liqwid Stablecoin Borrowing Reaches $6.47M on Cardano

Cardano lending protocol Liqwid reported $19.14 million in supplied assets and $6.74 million in outstanding loans at the end of August. Stablecoin borrowing increased by 27.46% during the final week of the month, although the published data does not separate independent user activity from positions opened through protocol-directed transactions.

Liqwid allows users to supply Cardano assets for variable returns or deposit collateral to borrow other supported assets.

Stablecoin Borrowing Reaches $6.47 Million

Liqwid ended August with $7.59 million in supplied stablecoin liquidity and $6.47 million in outstanding stablecoin loans.

USDCx recorded the highest individual utilization rate at 89.76%, just below the protocol’s 90% optimal utilization threshold. DJED reached 88.96%, the USDCx and USDM liquidity pool token recorded 86.97%, and $USDM reached 86.26%.

Total borrowing across all Liqwid markets increased by 26.26% during the final week of August to $6.74 million. Stablecoin borrowing grew slightly faster, increasing by 27.46%.

DJED represented the largest individual loan market at $2.87 million. USDM followed with $1.37 million, while USDCx accounted for approximately $773,000. Liqwid grouped the remaining $1.71 million under other markets, leaving the complete stablecoin loan distribution unavailable in the monthly report.

LIP-190 Contributes to August Borrowing

Part of the increase was connected to LIP-190, a governance decision authorizing Liqwid to return $2.5 million to private investors from an earlier financing round.

Liqwid Labs reported that $1,490,987 had been borrowed between August 24 and August 28 during the first phase of the plan. The amount included approximately $715,152 in DJED, $537,000 in USDM and $238,835 in wanUSDC.

Those positions were opened during the same week in which Liqwid recorded its 26.26% increase in total borrowing. The protocol also reported $18,590 in interest accrued on protocol-owned liquidity positions during August, compared with none in July.

The snapshot does not disclose how much of the initial $1.49 million remained outstanding on August 31 or separate LIP-190 positions from other borrowers. Public data therefore does not establish how much of the weekly increase came from independent users and how much resulted from the protocol’s repayment plan.

Liqwid said the remaining approved amount would be borrowed progressively over the coming months.

High Utilization Raises Yields and Limits Available Liquidity

Liqwid uses a utilization-based interest model in which borrowing costs and supplier returns increase as more deposited liquidity is committed to active loans.

At the end of August, the protocol reported supplier APYs of 33.99% for USDA, 25.55% for USDM, 23.51% for DJED and 19.45% for wanUSDT. These were end-of-month rates rather than average returns earned throughout August.

Under Liqwid’s documented model, suppliers receive 80% of repaid interest, while 20% goes to the protocol treasury. The snapshot does not provide market-level confirmation of whether additional incentives were included in every reported rate.

High utilization also reduces the amount immediately available for new loans and withdrawals. Liqwid’s supply, borrow and withdrawal services remained operational throughout August, but suppliers can withdraw only liquidity that has not been committed to active loans.

The protocol recorded $74,110 in accrued interest during the month, while borrowers repaid $23,800 in interest. Liqwid received $4,760 from repaid interest, a 59.13% decline from July, as protocol revenue is recognized when interest is repaid rather than when it accrues.

Liqwid also reported $304.87 in liquidation profit. The project’s statement that the protocol recovered without liquidations therefore applies to the recovery period described in the report, not the entire month.

With the remaining portion of the approved $2.5 million repayment still scheduled to be borrowed, Liqwid’s next monthly snapshot will cover another period in which protocol-directed loans and independent market activity overlap.