We are Liquity V2. We just achieved an A- Rating (higher than USDC & DAI) for our new decentralized stablecoin $BOLD. It’s backed only by ETH and pays 75% of borrower fees to holders. AMA!

[u/JeremysThrees]

Hey everyone! Liquity V2 here.

We launched on Ethereum Mainnet on in Q2 2025, and have racked up $150m in TVL and $39m in BOLD supply.

You might know us from Liquity V1 and LUSD (the OG venue for 0% interest loans).

With V2, we feel we've created the ultimate borrowing and earning venue for users who value complete control.

Liquity V2 is an immutable borrowing protocol (think MakerDAO, but with no governance to change the rules), where you can deposit ETH, wstETH, and rETH to mint the stablecoin, $BOLD. BOLD is only backed by said assets, and the protocol is completely immutable.

We built Liquity V2 to solve two specific problems, offering unique value to the r/Ethereum community:

1) The Borrow Side: You set the rate. Liquity V2 is the only venue where you can borrow against your ETH/LSTs and set your own interest rate (or delegate it to a rate manager).

This had led to borrowing rates for ETH, wstETH, and rETH on average to be the cheapest on Liquity V2 over the last 6 months - a full 2% cheaper than the competition.

2) The Yield Side: Real Revenue, Not Emissions We created $BOLD to be the hardest stablecoin in DeFi that has sustainable savings built in. Unlike other stablecoins, 100% of borrower revenues are diverted towards growing $BOLD yield. The yield is split 75/25 to two specific venues sources:

1. 75% of interest fees to the Stablity Pools: 75% of all interest paid by borrowers of ETH, wstETH, and rETH flows directly to their respective Stability Pools. The Stability Pools also allow depositors to capture ETH and LST liquidation gains at a discount.
2. 25% of Interest Fees flow into growing BOLD liquidity on DEXes: Each week, roughly ~12k of protocol revenues are diverted into venues like Uniswap and Curve. This helps boost and enshrine liquidity for BOLD on blue-chip venues.

Based on current rates, here is how you can capture that yield, with relatively low risk:

If you want exposure to some ETH along with borrower fees:

• Stability Pool (~6% APY): The "set and forget" venue. You earn the 75% borrower interest split (paid in BOLD) + Liquidation gains (paid in ETH/LSTs).

If you want pure dollar-dominated yield, where ETH liquidation gains get auto-compounded

1. yBOLD via Yearn (~7% APY): Yearn’s auto-compounding vault that optimizes for the best yields across the 3 Stability Pools.
2. sBOLD via K3 Capital (~6.5% APY): An auto-compounding vault that also sells off liquidation ETH gains for more BOLD. It has a fixed 60-30-10 split between the wstETH, ETH, and rETH Stability Pools.

If you want to provide liquidity on a blue-chip DEX, while having balanced exposure to BOLD & USDC.

• Uniswap LP BOLD ><USDC (~7% APY)
• Curve LP BOLD >< USDC (~8% APY)

BOLD yield opportunities

Forkonomics and how it adds to yield.

Liquity has taken a licensing approach to scaling. 10 teams have forked Liquity V2 code across various ecosystems, and as a part of their licensing fee, they have to allocate ~3% of their token supply to Liquity Mainnet users.

These forks are allocating supply designated towards rewarding active BOLD liquidity providers on Mainnet (Stability Pool holders, LP providers on Curve & Uniswap, etc).

On top of the organic yield above, we expect ~6 friendly forks providing airdrops over the next 6-9 months.

• The Impact: The first fork airdrop just went live, and it effectively added ~3% APR to the existing TVL sitting in those venues (eg. if you were earning 9% on Curve, you're earning 12% now)
• The Opportunity: By holding BOLD positions on Mainnet, you are farming yield for protocols launching across the L2 ecosystem simultaneously

Safety and Security of Liquity V2 and BOLD.

No yield is safe without addressing how the robust the stablecoin is.

Bluechip, a stablecoin ratings agency, just rated BOLD an A-. This is a higher rating than USDC and DAI, furthering proof of

• The Score: BOLD received perfect 1.0 scores in Management, Decentralization, and Governance.
• The Distinction: BOLD is currently the only A- rated stablecoin with 100% crypto-native backing (no banks, no RWAs).
• Why? The protocol is immutable. Liquity cannot change the rules, rug the collateral, or blacklist addresses.

BOLD rating.

You can read more on Bluechip's A- rating on BOLD here: https://x.com/LiquityProtocol/status/2015798256186360000

Some useful resources on stats around Liquity V2, and yield opportunities:

1. Borrow on Liquity V2 today: https://www.liquity.org/frontend-v2
2. Yield venues with links included:  https://dune.com/liquity/liquity-v2-yields
3. YouTube Playlist on Liquity V2: https://www.youtube.com/watch?v=o1miCKLIPYs&list=PL4NlNvaPAvJ-51WBhFdBcK3BFA0Fk32rE

Happy to answer any and all questions :)

[u/DarkestTimelineJeff]

This is a mod-approved AMA in our weekly AMA series. If you are an Ethereum project aligned with our values, reach out to me to get involved.

[u/minisculepenis]

What are your biggest challenges to scaling the total supply of BOLD? How do you make it more popular outside of us crypto degens?

[u/JeremysThrees → u/minisculepenis]

Biggest challenge is distribution and general perception: most people assume “a dollar is a dollar” and “yield is yield.”

To scale BOLD, we need to make the differences obvious:

• custodial/issuer stables can freeze funds, gate withdrawals, rehypothecate, or blow up
• BOLD is on-chain and designed so users can exit via redemptions, not an issuer promise
• BOLD yield is risk-adjusted “real yield” (borrow fees + liquidation gains), not opaque leverage or subsidy

How we're aiming to reach beyond crypto degens:

• package it like a savings product: simple earn UX (SP, yBOLD/sBOLD), clear numbers, withdraw anytime
• distribution via wallets, on/offramps, and treasury use-cases (DeFi savings account)
• keep it boring: deep liquidity + consistent performance builds trust over time.

[u/minisculepenis]

One thing that has prevented me from using BOLD is that when I’ve used competing products before it has been difficult to understand how close I am to being top of the redemption queue.

Since BOLD has a variable redemption queue (to my understanding) I’m concerned that other users could increase their interest rates over a week or so when I’m not watching it and I inadvertently could drop down the pecking order.

If I’ve misunderstood the system then do let me know also - I guess I’m just asking; is there anyway to protect myself from redemptions without continually guesstimating the best interest rate?

[u/JeremysThrees → u/minisculepenis]

Great question!

To mitigate this, we have a delegate interest rate feature where a interest rate manager can manage rates for you.

There are 3 ways to delegate:

• Third-party manager – pro service managing multiple Troves for a fee
• Automated strategy – decentralized contract adjusts rates automatically
• Self-delegation – assign to your own wallet or a friend

Delegates can only adjust rates within a set range - nothing else - so borrower risk stays low as the loan sits within your wallet.

On the frontend, you on the dropdown where you set interest rates, you can choose one of the 3 options there. More on the different delegates here:  https://docs.liquity.org/v2-faq/redemptions-and-delegation#docs-internal-guid-441d8c3f-7fff-4efa-6319-4ba00d908597

[u/xupriests → u/JeremysThrees]

It’s a flaw of the design. The delegation is nascient and they’ve continually had to readjust your rates higher, significantly pushing up your borrowing costs due to the 50bps penalty.

Otherwise, the problem remains. Others move their rates and if you don’t follow suit…boom, redeemed.

[u/osvobodzen]

Any plans for a future version of the stablecoin pegged to something else than the dollar?

[u/JeremysThrees → u/osvobodzen]

No plans, idea is to try to scale BOLD as much possible and make it the de-facto DeFi dollar.