Liquity

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**, 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 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).

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.

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.

Liquity V2 introduces flexible interest rate management options for users: - Self-manage your own interest rates directly - Delegate rate management to third-party providers - @dfinity's new ARM (Automated Rate Manager) solution now available - @summerstonexyz offering automated management services The update gives users more control over their lending strategies while providing automated alternatives for those seeking hands-off management. *Key Benefits*: - Simplified interest rate optimization - Professional rate management through trusted partners - Reduced manual monitoring requirements

Two protocols have submitted the first proposals to compete for $BOLD emissions through PIL, with $LQTY stakers as decision makers: - **SmarDex**: Introduced $USDN, a yield-generating synthetic dollar backed by delta-neutral ETH longs on their perp DEX - **EkuboProtocol**: Presents an AMM protocol featuring super-concentrated liquidity Voting hasn't started yet but proposals are expected to be finalized soon. This follows the recent activation of the bribing mechanism, which allocates 20K $BOLD weekly for V2 ecosystem expansion. [Learn more about SmarDex](https://shorturl.at/S9ePk) [Learn more about Ekubo](https://shorturl.at/DyaAh)

Liquity V2 is preparing for redeployment with frontend updates starting tomorrow. Users should take action on legacy positions before the weekend: - **Stability Pool depositors**: Withdraw deposits to minimize risk - **Borrowers**: Repay loans while $BOLD liquidity remains favorable - **BOLD holders**: Consider selling via DEX or use limit orders - **LQTY stakers**: Consider unstaking before relaunch *Important notes:* - UI disruptions expected during transition - Legacy app functionality may be limited - Position closures will remain possible post-redeployment - Redemptions available but may include dynamic fees Take action now to ensure smooth transition to new V2 system.

Liquity has launched its V2 audit competition on Cantina, offering security researchers rewards from a $350,000 prize pool. The competition runs from March 21 to April 27, 2025. Key details: - Regular bug bounty program suspended during competition period - All findings must be submitted through Cantina platform - Competition focuses on deployment-ready codebase - Part of Q2 2025 mainnet redeployment timeline The audit competition adds extra security scrutiny before V2's immutable deployment. Teams forking Liquity V2 can proceed independently once the patched codebase is public, with access to competition results. [View competition details](https://cantina.xyz/competitions/d86632df-ab33-4448-8198-64955eae6712)

Liquity introduces Earn, a new DeFi product designed to mirror the stability of U.S. Treasury Bills without traditional finance dependencies. Key features: - Stable, secure on-chain asset - Minimal counterparty risk - Full fund custody - Sustainable yield generation The product addresses common DeFi challenges like volatile rates and counterparty risks in tokenized treasuries. Users can deposit $BOLD to access what Liquity positions as DeFi's equivalent to T-Bills. Liquity V2's architecture ensures all protocol revenue from borrower interest flows back to grow the $BOLD stablecoin, creating a self-sustaining yield mechanism.