Liquity BOLD is a USD-pegged stablecoin issued by the Liquity Protocol in its V2 version. It is fully decentralized and overcollateralized, backed exclusively by crypto assets—specifically WETH (wrapped Ether), wstETH (wrapped staked Ether), and rETH (Rocket Pool Ether). Unlike many stablecoins, BOLD is designed to be resilient by relying solely on decentralized crypto collateral without involving real-world assets or centralized custody.

Key features of BOLD include:

Full Redeemability: BOLD can always be redeemed directly for the underlying collateral at a value of $1, ensuring liquidity and price stability.
Immutable Contracts: The smart contracts issuing BOLD are immutable, which reduces the risk of attacks or protocol changes that could affect the stablecoin's stability.
Market-Driven Monetary Policy: Liquity V2 employs user-set interest rates that dynamically influence borrowing and holding incentives, helping maintain BOLD’s peg to $1. For example, if BOLD trades above $1, borrowing rates adjust to reduce demand, bringing the price back down.
Separate Borrow Markets and Stability Pools: Each collateral type (WETH, wstETH, rETH) has its own borrow market and Stability Pool, allowing depositors to choose their exposure and compartmentalize risk. Stability Pools also distribute yield to BOLD depositors, funded by borrower interest payments rather than token emissions.
No Lockup Period: Users can deposit and withdraw BOLD from Stability Pools anytime, with yields reflecting borrower interest rates, which can be amplified if less than 75% of BOLD supply is deposited.
Governance and Incentives: BOLD is integrated with Liquity governance, with native incentives ensuring sufficient liquidity and protocol sustainability.

Liquity BOLD BOLD

Liquity BOLD Arbitrage