851239
Liquity

@liquityprotocol #851239

Be $BOLD • The best way to borrow with (staked) ETH • liquity.org
65 Follower 9 Following
A reminder that Liquity v2's $BOLD will be a completely Ethereum-native stablecoin that is:

- Only ETH (& LSTs) backed
- Offers protocol-enshrined real yield
- Directly redeemable
- Immutable

Study DeFi as its meant to be.
Staking LQTY in V2: A BOLD New Way to Align Incentives

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.

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.

2. No long-term lockups
Unlike “ve” models that require lock-ups, V2 gives stakers the flexibility to unstake at any time.
It also avoids the dilution risks seen in ve-models.

3. Stake longer, gain more power
The longer you stake, the more voting power you accumulate, giving you real influence over protocol decisions.

4. Immutable, yet flexible
Liquity V2’s core is immutable—trustless and secure—but the voting model is adaptable.

LQTY staking in V2 offers a sustainable, community-driven approach that prioritizes long-term stakers without the risk of dilution.
Want a video explainer to learn how Liquity V2 works?

Check out @ceazor's succinct walkthrough: https://x.com/Ceazor7/status/1833603064374387068
Liquity v2 is slated to launch on Ethereum in November, with audits already underway. As we approach the launch, there is one more important aspect of the new protocol that has yet to be discussed in depth: protocol incentivized liquidity (PIL).

It is a novel mechanism which directs a portion of v2 revenue to on-chain targets. Its goal is to create sufficient BOLD liquidity as well as to stimulate the growth of the ecosystem as a whole, all under the direction of LQTY stakers.

In link below, you’ll learn more about:
- How protocol liquidity incentives are funded
- How staked LQTY directs incentives
- How PIL is aligned with Liquity’s existing philosophy
- Why PIL matters

https://www.liquity.org/blog/directing-protocol-incentivized-liquidity-with-lqty
A reminder that Liquity v2's $BOLD will be a completely Ethereum-native stablecoin that:

- Offers protocol-enshrined real yield
- Is backed by ETH (& LSTs) only
- Depends on no 3rd parties
- Is directly redeemable
- Has 0 RWA exposure
- Is immutable
The Liquity V2 codebase is now public! 🚨 📣
https://github.com/liquity/bold/

This opens the doors for developers to build on top of V2, and redefines the future of borrowing in DeFi.
- User-set interest rates
- Native stablecoin yield
- Multi-collateral support
- PIL and LQTY staking

PIL and LQTY's role 👀
LQTY stakers will be able to direct protocol revenue anywhere on-chain.
At the same time they’ll be earning ETH and LUSD.

BOLDly fork us
With 10+ teams having already signed LOIs to deploy V2 across various L2’s, there will be plenty of cross-polination.
Expect to see these forks incentivizing early mainnet usage, while also helping with liquidity for BOLD across DeFi.

A new DeFi primitive
Developers can also build products on top of V2:
- Fixed and floating interest swaps
- Interest rate management tools
- Yield optimization across Stability Pools

Full blog post:
https://www.liquity.org/blog/liquity-v2-improving-defi-with-bold-innovation