Liquity (@LiquityProtocol): The endgame for CDPs with Liquity V2 ⛓️
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The endgame for CDPs with Liquity V2 ⛓️ Yesterday, we gave a talk at @stable_summit on why V2 will help create a DeFi native reference rate for borrowing against (staked) ETH. Here’s a quick TL;DR as to why Liquity V2 will be the ideal venue for borrowers and lenders - especially if you’re eyeing ETH moving up 👀 As the market heats up, rates across DeFi are rising. Traditional DeFi lending and borrowing impose one-size-fits-all rates that fluctuate unpredictably or are governed via slow-moving adjustments. With Liquity V2, you are the rate maker, giving you: - Full control over what you pay - Flexibility to adapt rates to market conditions - Predictable costs that fit your strategy In short: 100% control over your borrow costs. Borrowing is one thing, but what about the stablecoin? 👇 $BOLD will be the only stablecoin that combines maximum decentralization with maximum yield. Real Yield: V2 will funnel all protocol revenues towards growing BOLD. This yield will come in the form of interest rates that borrowers pay (in $BOLD), and liquidation gains (in ETH) for those who deposit in the Stability Pools. Liquidity: The protocol will enshrine a fixed portion of the interest from borrowers towards growing liquidity on external DEXes. Additionally, BOLD is always fully backed by (staked) ETH. Protocol redemptions ensure that BOLD is as liquid as the underlying collateral itself. Stability: The market-driven monetary policy through interest rates ensures that there is a robust mechanism to maintain the USD peg. Scalable: The fixed enshrinement of fees to BOLD depositors and liquidity providers means that the more BOLD gets integrated across DeFi, the larger the pool of yield available to the most active users becomes 👀 And then there's the friendly forks. As customized versions of Liquity V2 propagate across other networks and ecosystems, BOLD holders gain access to early liquidity incentives and diverse yield opportunities across multiple chains. This expanded reach builds a multi-chain BOLD ecosystem where demand fuels further yields for Stability Pools and Protocol Incentivized Liquidity. By collaborating on liquidity and incentivizing growth, friendly forks drive demand for BOLD, improving the yields available to BOLD users and unlocking net new demand as a result. The future is BOLD.