Liquity V2: Improving DeFi with BOLD Innovation

It has been over three years since we first shared LUSD with the world. Today, we are excited to announce the public release of our Liquity V2 codebase, the protocol that enables our new upcoming stablecoin, BOLD. ‍

What's the BOLD New Deal?

Liquity V2 is packed with innovations that address the limitations of the original protocol and LUSD:

• User-set interest rates 
• Multi-collateral support 
• Improved capital efficiency 

But at the heart of Liquity V2 beats a game-changing feature for LQTY holders in particular: Protocol Incentivized Liquidity (PIL). It's powered by staked LQTY, allowing users to direct sustainable subsidies from protocol interest revenue. Not only that, but by staking LQTY with V2, these stakers will still be able to earn all of the fees and rewards Liquity V1 will continue to generate. 

This, of course, sounds a lot like governance coming to Liquity. To be clear: LQTY stakers will have no power over the core protocol parameters. Directing the portion of protocol revenues set aside for ecosystem growth is all that they will have the power to do. Liquity shall stay true to its immutable roots while adapting to the ever-shifting sands of DeFi.

Fortune Favors the BOLD

BOLD, our new stablecoin that's anything but timid, will be deployed later this year. It's designed to offer DeFi users a fresh alternative for saving and earning on-chain. But BOLD isn't doing it alone – it's bringing friends.

More than 10 prospective forking teams have already signed letters of intent to deploy their own versions of Liquity V2 across various networks and collateral assets. These friendly forks will contribute to the Liquity ecosystem, incentivizing early Liquity V2 usage. You can read more about the friendly fork initiative here.

Why should you care?

We're not just launching a new protocol; we're kickstarting an ecosystem. By embracing collaboration and fostering a network of like-minded teams, BOLD will be set up for success from day one.

• Deep Liquidity: With multiple teams working within the ecosystem, expect BOLD and its sibling stablecoins to enjoy robust liquidity across the DeFi landscape.
• Enhanced Stability: More liquidity and wider adoption mean increased stability for the entire ecosystem.
• Innovative Catalyst: By providing a solid foundation for stablecoin creation, Liquity is fueling the next wave of DeFi innovation.

Ready to be part of the BOLD revolution? Stay tuned for more updates as we gear up for the official launch. The future of DeFi is looking brighter – and BOLDer – than ever.
‍
Head to our Liquity V2 landing page to learn more!
‍‍
Follow us on Socials:
‍X
Discord