🎯 Create BOLD Content

**Redemption volume declining significantly** over the past two weeks on Liquity protocol. **Key impacts:** - Users lowering their borrowing rates in response - Makes Liquity's borrowing costs more competitive - Rate management can be automated through delegation **Background context:** Redemptions allow users to exchange stablecoins for collateral when trading below peg. In Liquity v2, this mechanism will be improved with better individual protection and reduced global redemption volumes through dynamic interest rate adjustments. [Join Discord for questions](https://discord.gg/liquity)

**Rate managers** are proving their value beyond redemption protection by maintaining ultra-low borrowing costs. **Key developments:** - rETH borrow rates adjusted from **5.50% to 0.50%** - Some users accessing rates **10x below market** - Automation through rate managers keeps costs minimal **Why rates stay low:** - BOLD token maintains peg stability - Low redemption risk environment - Automated rate management systems **Risk considerations:** - Market conditions can shift rapidly - Even average rates remain among DeFi's lowest - Rate managers provide both protection and cost optimization This demonstrates how **automated systems** can deliver dual benefits: protecting positions while maximizing cost efficiency in volatile markets.

**DeFi protocols are strengthening Ethereum** through crypto-backed stablecoins, with BOLD leading the charge. **Key developments:** - Liquity's treasury holds over 5% in crypto stables - BOLD creates direct demand for ETH - Multiple protocols now offer decentralized alternatives **Major players include:** - Liquity Protocol (BOLD) - Curve Finance (crvUSD) - Protocol FX (fxUSD) - Aave (GHO) - Asymmetry Finance (USDaf) These **crypto-backed stablecoins** provide decentralized alternatives to traditional stables while generating utility for Ethereum's ecosystem. *Support decentralized stables and help power Ethereum's growth.*

**BOLD supply and TVL reach record levels**, driving protocol revenue higher in a self-reinforcing cycle. **Key metrics:** - 523K BOLD distributed through PIL program - $45K earned by LQTY stakers in bribes - Revenue growth fuels higher PIL rewards and bribes **The symbiotic system works:** As BOLD adoption increases, rewards grow for all participants. **For LQTY stakers:** Vote on liquidity allocation. New Uniswap v4 proposal aims to deepen liquidity pools. **For projects:** Propose initiatives to earn sustainable stablecoin rewards. **For borrowers:** Access DeFi's lowest borrowing rates. Check the [protocol dashboard](https://dune.com/liquity/protocol-incentivized-liquidity) for real-time metrics.