DeGateDex Integrates LUSD & LQTY for Trustless Trading

The CLARITY Act, influenced by banking lobbyists, prohibits stablecoin issuers from paying yield on deposits. However, Liquity's BOLD stablecoin may circumvent this restriction due to its decentralized structure. **Key Points:** - Banking lobby successfully pushed for ban on stablecoin yield payments - CLARITY Act specifically targets centralized issuers - **BOLD operates without a central issuer** - every user acts as their own issuer - This structural difference may allow BOLD to continue offering yield while competitors cannot **Context:** The stablecoin yield debate has been the primary obstacle in passing the CLARITY Act. Major players including Coinbase, Circle, Ripple, and JPMorgan met with the White House to resolve the issue. Banks argue yield-bearing stablecoins threaten traditional deposits and credit creation. Global regulators are taking similar stances - the EU's MiCA framework and UAE regulations also restrict stablecoin yield. The irony: regulations designed to protect traditional banking may inadvertently advantage decentralized protocols like Liquity over centralized competitors.

**Pharos Watch has released safety scores** to help users monitor stablecoin risks across multiple chains. The platform addresses a critical gap for DeFi users managing assets across 10+ chains who lack visibility into their stablecoin safety. **Key features include:** - Peg health monitoring - Real-time depeg alerts - Comprehensive risk scores - Liquidity depth analysis - Centralization grades The tool consolidates data from all connected wallets and stablecoins into a single dashboard view, making it easier to assess portfolio risk. This builds on Octav's earlier work in stablecoin risk monitoring, providing users with actionable intelligence about their holdings' safety across the multi-chain ecosystem. [View Safety Scores](https://pharos.watch/safety-scores/)

**Liquity V2 now offers ETH borrowing at just 0.5% APR** - the cheapest leverage available on Ethereum Mainnet for bullish ETH holders. **Key advantages:** - Zero redemption risk on the ETH branch - Stability Pool funds exceed total debt - BOLD stablecoin trading slightly above peg ($1.005), making redemptions unprofitable - Up to 91% LTV for ETH collateral **How it compares:** - 365-day average rate: 2% below competitors - Rates never spike above 6% - Near-zero correlation with major lending markets like Aave and Morpho - Fixed interest rates available **Example use case:** Deposit 100 ETH ($230k), borrow 230k BOLD at 0.5% (~1,150 BOLD/year), buy another 100 ETH for 2x exposure. With BOLD at $1.005, you save ~1,150 BOLD upfront - covering a full year of interest. Ideal for treasuries seeking runway without selling ETH, or traders wanting controlled leverage costs. [Start borrowing](https://liquity.app/borrow)

**DeFi Collective Initiative Ending** The DeFi Collective initiative is being discontinued, with $63,000 in permanent liquidity being redistributed back to the Protocol Incentive Liquidity (PIL) program. **Key Changes:** - DeFi Collective will cease operations - $63k in perma-liquidity returns to PIL - Team refocusing efforts elsewhere The Collective had been one of the original PIL recipients at Liquity V2's launch, alongside Curve Finance. They stood out by matching PIL rewards with their own treasury funds, leading in TVL attraction per unit of PIL incentives. [Read the full announcement](https://deficollective.org/blog/permalp-unwind/)

**Action Required for LQTY Stakers** $63,000 in additional PIL rewards are being distributed, but over 14% of staker votes need reallocation. **Recommended Voting Strategy:** - Focus on initiatives with strongest liquidity - Priority pools: [Curve Finance](https://curve.fi) BOLD/USDC and [Uniswap](https://uniswap.org) v4 BOLD/USDC These targeted incentives aim to boost BOLD demand, strengthen the peg, and reduce slippage across major DEX venues. **Your participation matters** - reallocating votes helps optimize reward distribution and protocol performance.