The .ly domain name has become pretty fashionable lately. It seems that whenever a new web app is released, it’s using the .ly TLD. .ly belongs to Libya and given the recent events, why not spend your money elsewhere?
There are plenty of other two letter TLD’s available; if you like the way ‘ly’ sounds, there’s always .li (which belongs to Liechtenstein and can be registered via the Swiss domain administrators, SWITCH)!