Liquity, the pioneer behind the decentralized and immutable LUSD stablecoin, has officially deployed Liquity V2 and its new decentralized stablecoin BOLD to the Ethereum mainnet. Designed to address the macroeconomic challenges faced by fixed-rate lending systems, Liquity V2 introduces a groundbreaking lending architecture powered by autonomous, user-set borrowing rates.
Borrowers on Liquity V2 can freely dictate the annual interest rate they pay on their troves. This rate directly determines their position in the protocol's redemption queue: lower interest troves absorb redemption events first during market contractions, while borrowers seeking maximum stability can select higher rates to safeguard their positions against redemption.
Additionally, Liquity V2 introduces multi-collateral support with strict branch isolation. Users can borrow BOLD against native ETH as well as leading liquid staking derivatives including Lido wstETH and Rocket Pool rETH, with each collateral asset segregated into independent lending branches to preserve total protocol solvency. With immutable, governance-free smart contracts, Liquity V2 sets a new gold standard for decentralized stablecoins.
