As rates fall and the market heats up, demand for borrowing is set to surge, sending DeFi rates soaring. In this shifting landscape, borrowers need more control than ever.
Liquity V2 delivers exactly that—putting the power to set interest rates directly in your hands.
V2 empowers borrowers by providing:
Predictable borrowing costs ⚖️: Control your rates to secure the terms that work for you.
High Capital Efficiency ✅ : Borrow against your ETH (LSTs) with market-leading LTV ratios.
Minimized Risk ⛓️: Borrow with confidence under immutable, trustless contracts with terms set in stone.
Instead of being forced into one-size-fits-all rates, you define your own terms!💡
V2 provides you with the flexibility to adapt to changing market conditions, and confidently control your loans.
This is borrowing on your own terms—and, actually DeFi.
Liquidation and redemption bots have been instrumental in ensuring the efficient operation of Liquity V1 and maintaining the LUSD peg.
This will remain the case for Liquity V2 and BOLD.
Liquidation bots play a crucial role in removing bad debt from the system, earning a fee in ETH/LST in the process. Redemption bots, on the other hand, arbitrage the price of BOLD, netting the difference as profit.
We're now reaching out to bot operators interested in enhancing the efficiency of Liquity V2 while generating income from their services.
If you're interested in learning more, please reach out to us on Discord.
If you contributed to the expansion of the Liquity ecosystem, then please submit your claim here: https://forms.gle/Cd6sri886BMYXvHJ8 https://x.com/LiquityProtocol/status/1844318451889995827/photo/1
Staking LQTY in V2: A BOLD New Way to Align Incentives
With Liquity V2 just around the corner, the new LQTY staking module breaks away from the precedent set by voting escrow (ve) systems.
It offers a sustainable, community-driven model that puts long-term stakers first—with zero dilution risk and no need for locks.
Here are four reasons why staking LQTY stands out:
1. Dual Rewards Staking LQTY in V2 unlocks rewards from both V1 and V2, offering stakers BOLD adoption as well as continued participation in LUSD.
This lack of opportunity cost ensures that the Liquity community does not find itself split between V1 and V2.
2. No long-term lockups Unlike “ve” models that require long-term lock-ups, Liquity V2 gives stakers the flexibility to unstake at any time. There are no upfront costs, giving you freedom and flexibility to stay aligned with the protocol without needing to commit your tokens for years.
This approach also avoids the dilution risks commonly seen in ve-models, given the maturity of LQTY and its lack of ongoing supply emissions.
3. Stake longer, gain more power The longer you stake, the more voting power you accumulate, giving you real influence over protocol decisions. Plus, as Liquity evolves, your ability to drive initiatives grows—and with it, the potential to get paid for your governance decisions.
4. Immutable, yet flexible Liquity V2’s core is immutable—trustless and secure—but the voting model is complementary. The fixed 25% of protocol revenue for incentivized liquidity gives LQTY stakers the power to direct rewards to high-impact initiatives. Plus, the veto mechanism allows stakers to propose and vote on adding or removing modules, keeping community influence front and center while safeguarding decentralization.
LQTY staking in V2 offers a sustainable, community-driven approach that prioritizes long-term stakers without the risk of dilution.
It is not only rewarding—it’s about being BOLD enough to shape the future of V2 with real flexibility and impact.
Directing Protocol Incentivized Liquidity with LQTY
Liquity V2 is scheduled to launch in November. In this post we will go over a core innovation it introduces - PIL - and how it adds a new dimension to $LQTY.
Get paid to raise awareness for Liquity V2 and $BOLD!
For over 2 years, Liquity has been rewarding community members with retroactive incentives. We've seen numerous posts, threads, articles, dashboards, translations, videos, and other initiatives.
Over 100 people have received rewards so far.
Starting today, we're increasing the monthly budget from 3,000 to 5,000 $LQTY. Rewards are denominated in LQTY, but paid out in $ETH.