Liquity V2 vs Nerite: protocol features and differences

What’s the difference between Nerite and Liquity V2?

The Nerite Protocol is a "friendly fork" of Liquity V2. Liquity V1 was rated as the safest stablecoin protocol ever by Bluechip (a stablecoin rating agency), so it makes an incredible base to add to and build our own unique protocol with.

So what’s new in Nerite, and what is the difference between Nerite and Liquity V2?

1. Arbitrum focus
   Liquity is deployed on Ethereum mainnet only. Nerite is built specifically for the Arbitrum L2 network. That means using Nerite is significantly cheaper, it only costs a few cents to open a loan on Nerite. It also means we can lower our minimum debt requirement for taking out loans to $500 from Liquity’s $2,000. 

2. New collaterals
   Liquity V2 only supports ETH, wstETH, and rETH as collaterals. Nerite supports these 10 assets, with additional security improvements like debt limits for each: ETH, wstETH, rETH, rsETH, pufETH, weETH, tETH, ARB, COMP, and tBTC.

3. Native Stablecoin Money-Streaming
   Nerite was uniquely created with the Superfluid protocol built into it natively. That means you can send stablecoins linearly over time, like $500 per month, and a receivers wallet balance will increase every microsecond over that period. Nerite issues the world's first natively streamable stablecoin which requires no extra wrapping or other actions to use.

4. Governance Aggregation
   Nerite accepts the governance tokens ARB and COMP as collateral. These tokens can still be delegated while they are deposited and used for backing our stablecoin. Nerite is innovating on governance by allowing users to maintain their vote power while still accessing the economic power of their tokens. 

5. Many other small optimizations specific to our implementation
   New OEV oracle auctions that capture revenue from oracle price updates. A governance minimized system which can update the new debt limits safely. Increased redemption base fee to maintain stronger dollar peg and prevent value leak through oracle price float arbitrage. Updated throttled redemption rate launch parameters. Significantly lowered gas compensation fee. 

Overall, Nerite keeps most of Liquity’s innovative protocol architecture for their V2: user set interest rates, a yield bearing stability pool system for stablecoin holders, and strong peg guarantees through redemptions.

If you’re a developer and want to check out the technical specs of the differences check out this hackmd doc, and our changelog on Github.