Liquity V2 Introduces Flexible Interest Rate Management
Liquity V2 Introduces Flexible Interest Rate Management
🎯 Rate Control or Autopilot
Liquity V2 now offers users two options for managing loan interest rates:
- Self-management of rates directly
- Delegation to third-party services like Summerstone
This follows recent updates including:
- Partnership with 15+ friendly forks
- New V2 Leaderboard tracking user activity
- Revenue sharing model:
- Stability Providers: 75% of interest + liquidation gains + fork rewards
- Liquidity Providers: 25% of interest + swap fees + fork rewards
Current borrow rates range from 0.5% - 1.4%, among the lowest in DeFi. The platform supports ETH and LST collateral types including wstETH and rETH.
The reference rate for DeFi 🔷 Despite markets heating up, ETH borrow costs on Liquity V2 keep dwindling down 📉 Borrow rates on Liquity V2 are the LOWEST in DeFi 🔵
Yield-bearing $BOLD wrappers 🟡 🔵 Coming soon, @k3_capital's $sBOLD and @yearnfi's $yBOLD will do far more than auto-compound ETH rewards. 👇 - Productive collateral: planned listings on money markets like @eulerfinance open recursive borrowing and other liquidity loops
1 day to go. Borrow on your own terms. Set your rate. Mint BOLD. Put your $BOLD to work and earn from Day 1. Liquity V2 relaunches tomorrow.
The early $BOLD catches the worm 🪱 Liquity V2’s Stability Pool earns from: • Borrow fees: accrued over time • Upfront fees: paid when users open or adjust loans • Liquidations: not taken into consideration here Whenever a new loan is opened, the borrower pays a 7-day fee
Unwind Legacy Liquity V2 Positions With Liquity V2 redeploying next week, legacy V2 users should consider unwinding existing position as liquidity conditions may worsen: Stability Pool depositors 👉 Withdraw your deposits as they are at risk. Borrowers 👉 Repay your loans
Behind every $BOLD loan sits a revenue stream - and $LQTY controls it. LQTY is one of the few assets tied to real protocol revenue. 100% of Liquity V2’s fees are used to grow $BOLD, with 25% being enshrined as protocol incentivized liquidity (PIL) to stimulate ecosystem
10/ $LQTY directs incentives for $BOLD, a crypto-native stablecoin with no kill switch. Immutable, overcollateralized, and hard-coded for freedom. @LiquityProtocol is 12.5% of the $OPEN index.
Introducing the V2 Leaderboard With Liquity V2, liquidity is bootstrapped jointly with 15+ friendly forks. Part of the Fork tokens is allocated to further incentivize V2 LPs and SPs: - SPs: 75% of borrowing interest + liquidation gains + fork rewards - LPs: 25% of borrowing
on Liquity V2, you can: - manage your own interest rates OR - delegate them to a 3rd party (like @summerstonexyz) learn more about their automated rate management solution 👇
Summerstone Docs just dropped! Dive into automated interest-rate management: - Why Managed & How it works - Savings Calculator walkthrough - Supported Protocols Effortless. Non Custodial. Automated 🫡 Read up! summerstone.xyz/docs/for-users/
say goodbye to one-size-fits-all rates 💵 multiple borrow positions on Liquity V2 now ONLY paying between 0.5% - 1.4% in interest 🤯 only possible on Liquity V2 image courtesy of @DeFiSaver 👇
Unwind Legacy V2 positions Starting tomorrow, frontends will begin preparing ahead of the V2 redeployment to the new Liquity V2. Naming, logos, and UI behavior will update - the current app becomes the legacy version. With this in mind, users are advised to unwind legacy
SmarDex Proposes New Balancer Pool Initiative for BOLD Token
SmarDex has proposed a new initiative to create an incentivized pool on Balancer, aiming to enhance liquidity and returns for BOLD token holders. Key points: - New pool will be created on Balancer platform - Initiative currently up for community voting - Plans include bribing implementation once Balancer gauge becomes active This follows earlier ecosystem expansion efforts where 20K BOLD tokens were allocated weekly for pool creation and integration initiatives. *Learn more and vote at* [Liquity Forum](https://voting.liquity.org/t/smardex-wusdn-bold-liquidity-initiative/64)
sBOLD Launch Announcement: New Yield-Bearing Token for BOLD Deposits
**sBOLD**, a new liquid yield-bearing token for $BOLD Stability Pool deposits, is launching this week. Key features include: - Automatic BOLD yield compounding - DeFi and money market compatibility - Security audits completed by Chain Security and Dedaub - Exposure to 16+ friendly fork rewards This follows the recent launch of **yBOLD** by Yearn Finance, which offers: - Automated yield optimization across Stability Pools - Permission-less and oracle-less operation - Zero entry/withdrawal fees Both tokens represent significant DeFi integrations for Liquity V2, enabling users to maximize yields while maintaining liquidity. [Learn more about yBOLD](https://docs.yearn.fi/getting-started/products/yvaults/yBold)
Liquity V2 Announces Bot Development for Enhanced DeFi Operations
Liquity V2 is expanding its DeFi ecosystem with new bot development initiatives. @TelosConsilium is leading the development of specialized redemption and liquidation bots for Liquity V2 and its forks. - **Liquidation bots** remove bad debt from the system, earning ETH/LST fees - **Redemption bots** arbitrage BOLD price differences for profit - Both bot types are *crucial* for maintaining LUSD peg and system efficiency The team is actively seeking bot operators to participate in the Liquity V2 ecosystem. Interested parties can join discussions on [Discord](https://discord.com/invite/2up5U32).
Cantina Security Review of V2 Protocol Completed
A comprehensive security audit of the V2 protocol has been completed through Cantina, involving 908 security researchers. The review identified only 2 medium-severity findings, which were addressed before redeployment. Key points: - 908 researchers participated in the review - Only 2 medium findings discovered - Issues fixed pre-redeployment - Judging process currently underway - Results pending publication This thorough review process demonstrates the protocol's robust security measures and commitment to code quality.
Arbitrum Fork #5 Update from Nerite
Nerite, a fork of Liquity V2, is preparing to launch their 5th iteration on the Arbitrum network. This represents a continuation of their development on the platform, building on their previous implementations. - Fork #5 marks another milestone in Nerite's expansion on Arbitrum - Project maintains connection to Liquity V2 fundamentals - Launch timeline indicates *soon* but specific date remains unconfirmed Follow [@NeriteOrg](https://twitter.com/NeriteOrg) for the latest updates and launch details.