Freedom Stablecoins: Code-Run, Crypto-Backed, User-Controlled
Freedom Stablecoins: Code-Run, Crypto-Backed, User-Controlled
🔓 Freedom stablecoins explained
Liquity contributor Michael Svoboda introduced the concept of 'freedom stablecoins' on The Rollup podcast, outlining a new approach to stable digital currencies.
Key characteristics:
- Run entirely by code without human intermediaries
- Backed by cryptocurrency rather than traditional assets
- Controlled by users, not centralized entities
- Eliminates traditional finance (TradFi) risk exposure
This model represents a shift from conventional stablecoins like USDC or USDT, which rely on bank deposits and regulatory frameworks. Freedom stablecoins aim to operate independently of the traditional financial system while maintaining price stability through algorithmic mechanisms and crypto collateral.
The discussion comes as stablecoins continue gaining traction as crypto's most practical application for everyday transactions and value transfer.
What's a 'freedom stablecoin' ? Liquity contributor @svobodamichael explains on @therollupco - Run by code - Backed by crypto - Controlled by users. - No TradFi risk. x.com/therollupco/st…
With so much PTSD around pegs, who should actually hold a sovereign stablecoin? Michael Svoboda breaks it down: Self-sovereign individuals, DeFi yield seekers, and treasuries wanting uncorrelated yield.
🎙️ Liquity Explains BOLD Stablecoin
Liquity appeared on the Epicenter podcast to discuss BOLD, their crypto-native stablecoin, and how Liquity V2 enables users to operate as their own bank. **Key Features of BOLD:** - No freeze, blacklist, upgrade, or pause functions - Permissionless minting and redemption - Redeemable at $1 for ETH collateral anytime - Fully decentralized with no intermediaries **Current Yield Opportunities:** - BOLD/USDC LP pools: 11-34% APR across Curve, Uniswap, and Ekubo - Stability Pools: 8-192% APR from liquidations and borrower fees - 75% of protocol revenues distributed to Stability Pool depositors The protocol recently processed $1.1M in liquidations while BOLD maintained its $1 peg. Liquity positions BOLD as a trustless alternative in a stablecoin market increasingly divided between fully regulated options and purely decentralized protocols. [Listen to the podcast](link)
Liquity V2 Team Highlights BOLD's Security Track Record and Market Performance
The team behind Liquity V2 and BOLD stablecoin shared key metrics about their protocol's security and performance: **Track Record:** - Liquity V1 achieved $5B peak TVL over 4 years with zero exploits - V2 underwent 5 comprehensive audits from ChainSecurity, Dedaub, Cantina, Coinspect, and Recon **Recent Performance:** - V2 operated without issues through 9 months of varying market conditions - The protocol has been forked by over 10 teams The announcement emphasizes the team's focus on security principles and operational stability in building crypto-native stablecoins.
BOLD Stablecoin Receives A- Rating from Bluechip, Outranking USDC and DAI
**BOLD stablecoin has secured an A- rating from Bluechip**, making it the only crypto-native stablecoin to achieve an A-tier rating. This places BOLD above established competitors like USDC and DAI, which both received B+ ratings. **Key highlights:** - First crypto-native stablecoin with A-tier rating - Rated higher than USDC (B+) and DAI (B+) - Cannot be frozen, unlike centralized alternatives The rating reflects BOLD's strong fundamentals and decentralized architecture. Users can access BOLD through [Liquity's platform](https://liquity.app/borrow) or purchase it via [DeFi aggregators](https://swap.defillama.com/). View the full Bluechip rating analysis at [bluechip.org](https://bluechip.org/en/coins/bold) and read the detailed breakdown at [Liquity's blog](http://www.liquity.org/blog/bold-receives-a--rating-from-bluechip).
BOLD: A Crypto-Native Stablecoin for Ethereum Believers
**BOLD** is positioning itself as a decentralized alternative to traditional finance-backed stablecoins for Ethereum users who prioritize censorship resistance. **Key Points:** - Targets ETH holders seeking to diversify from TradFi stablecoins - Emphasizes trustlessness and decentralization - Addresses the contradiction of using censorable stablecoins in censorship-resistant DeFi - Recently received an **A- rating** for its approach The project argues that Ethereum's role as a decentralized financial settlement layer is undermined when major stablecoins can be frozen by centralized entities. BOLD aims to solve this by offering a crypto-native stablecoin that aligns with Ethereum's core values while minimizing risk for users.