Guide to Liquity V2

Liquity V2 allows you to borrow a stablecoin against ETH and LSTs.
It pioneers user-set rates which provides users with greater control over their costs. The new stablecoin $BOLD will provide sustainable real yield. It inherits the resilience of LUSD, while benefiting from improved peg dynamics.

Key Features and Improvements

Liquity V2 is building on the success of V1.
Find an overview of the differences in this table.

Borrowing

Liquity V2 improves the borrowing experience on several levels:

User-set interest rates - a better monetary policy
New collateral types
Short-term loans
Multiple loans per address (and transferable)
1-click multiply

But it keeps all of what V1 has been valued for:

No TradFi exposure
Immutability
Rigorous security
Predictable fees
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Video: How to Borrow

Article: How to set Your Interest rate

Tweet: How to find and use market-wide borrow rates

Docs: Borrowing and Liquidations

Docs: Redemptions and Delegations

Video: What are Redemptions

$BOLD Stablecoin

Holding BOLD means having peace of mind, knowing:

It will always be worth $1, thanks to direct redeemability
No 3rd parties can access or influence your funds
No admins or DAOs can introduce changes

Docs: What is BOLD and how does it work‍

Earn

Liquity V2 dedicates 100% of its revenue towards growing BOLD.
3/4 (75%) of it is allocated to the Earn product, where users receive a competitive, and sustainable yield by simply depositing a stablecoin.

Video: Earn yield with BOLD
Docs: How can I earn with Liquity V2
Read more: Stability Pool Opportunities

Fork Incentives

Liquity V2 is launching under a business license, and since the announcement, over 15 forks have signed agreements to adopt V2.

This setup is beneficial for all parties:

Liquity V2 and its users benefit from long-term incentives for BOLD users provided by the forks.
The forks benefit from a robust and secure codebase, as well as a strong network effect.

Staking LQTY and Voting

Staking LQTY in Liquity V2 unlocks a unique, dual-reward opportunity. Not only do you gain influence over the future of Liquity v2, but your stake also continues to function in Liquity v1, earning you LUSD and ETH. Additionally, a bribe market is expected to emerge, with protocols vying for the votes of LQTY stakers.

Video: Stake LQTY and Vote