BOLD Stability Pool Depositors Earn Yield from Four Liquidation Events Since October
BOLD Stability Pool Depositors Earn Yield from Four Liquidation Events Since October
💰 BOLD depositors cleaning up
Liquity V2's Stability Pool continues to generate returns for BOLD depositors through liquidation events.
Since October 10th, the protocol has processed four liquidation events, each creating yield spikes for Stability Pool participants. While these events are unpredictable in timing, they consistently occur and provide reliable returns.
Recent performance highlights:
- ~$300k in liquidations processed (primarily ETH)
- ETH SP depositors earned approximately 0.30% ROI per event
- Annualized returns reached 110% APR during liquidations
- BOLD maintained its $1 peg throughout all events
The protocol operates entirely through immutable smart contracts, providing trustless yield generation. Depositors earn returns by providing liquidity that absorbs liquidated collateral when borrowers' positions fall below required thresholds.
While liquidation timing remains uncertain, the consistent pattern demonstrates a proven mechanism for BOLD holders to earn passive income through Stability Pool deposits.
YT $BOLD holders are getting paid. Liquidations are a rare but reliable source of yield spikes for SP depositors. While you do not know when they will happen, they always do. Since 10/10, we have had 4 such events, each resulting in yield spikes. Learn more about the mechanics
Periodic reminder that stability pools are inherently long black swans / liquidation cascades. Congrats to everyone who held sBOLD or the YTs this past month. IMO, Liquity YTs are some of the best black swan hedges out there. No affiliation, I just love the team & thesis.
🏛️ Liquity V2 Positions BOLD as Self-Sovereign Alternative to Regulated Stablecoins
Liquity is positioning its V2 protocol and $BOLD stablecoin as a fully decentralized alternative as the stablecoin market splits between regulated commodities and decentralized protocols. **Key Features:** - Ethereum-native with no intermediaries or governance - Immutable smart contracts - Borrow $BOLD against ETH and LSTs - Predictable yield for holders **Recent Performance:** - Successfully processed $1.1M in liquidations - ETH Stability Pool depositors earned 192.57% APR during recent event - $BOLD maintained $1 peg throughout volatility - Multiple yield venues offering 20%+ APR **Yield Opportunities:** - Stability Pools: 8-100%+ APR from liquidations and borrower fees - LP positions: 13-34.55% APR across Ekubo, Curve, Uniswap - sBOLD/yBOLD: Auto-compounding options via Pendle and Spectra Liquity argues the middle ground of "trust me bro" stablecoins with multisigs and opaque yield will be eliminated, leaving only fully regulated and purely decentralized options. Built by the team behind LUSD, which reached $5B TVL over 4+ years with zero governance interference.
Rails Launches Trove Economics Dashboard for Liquity Users
Rails has released a new feature that provides comprehensive insights into Trove economics for Liquity users. **Key Features:** - Detailed breakdown of redemptions and fees - Real-time collateral value tracking - Clear explanations of complex DeFi mechanics The dashboard aims to make Liquity's lending protocol more accessible by visualizing important metrics that affect user positions. This builds on Rails' previous work with Liquity V2 position visualizers. For users managing Troves, this tool offers transparency into the economic factors that impact their collateralized debt positions.
Liquity V2 Offers Lowest DeFi Borrowing Rates at 2% Below Competition
**Liquity V2 enables treasuries to borrow against ETH without selling assets** The protocol allows users to set their own fixed interest rates or delegate to rate managers like Summerstone and Bolder Cash. This flexibility has resulted in competitive advantages: - **1-year average rates**: Lowest in DeFi, 2% below competitors - **Loan-to-value ratio**: Up to 91% with ETH collateral - **90-day performance**: Cheapest loans in the market The platform offers two borrowing options: users can either set custom fixed rates or use automated rate management services. This approach gives treasuries runway flexibility without liquidating ETH holdings. [Learn more about Liquity V2](https://www.liquity.org/frontend-v2)
Liquity Allocates 20,000 BOLD Weekly to LP Rewards
Liquity is distributing **20,000 BOLD tokens weekly** to liquidity providers on Curve and Uniswap. **Key Details:** - Curve Finance LPs earning ~11% APR - Uniswap LPs earning ~12% APR - Rewards paid in addition to standard swap fees - LQTY stakers can direct rewards to specific pools **How It Works:** The rewards program aims to incentivize liquidity for BOLD, Liquity's V2 stablecoin. LQTY token stakers have governance rights to allocate these rewards toward pools they believe will drive protocol growth or where they're providing liquidity themselves. These yields represent sustainable, ongoing rewards rather than temporary promotional rates.