After months of development and rigorous internal testing, we're thrilled to announce the public testnet deployment of Liquity V2, home to our upcoming stablecoin, BOLD. This marks a significant milestone in our journey to revolutionize DeFi lending and stablecoin mechanics.
Liquity V2 introduces several new features informed by our learnings from LUSD which will cement it as the premier CDP stablecoin solution for DeFi:
- User-Set Interest Rates: Say goodbye to governance-controlled rates. Borrowers can now set their own interest rates, creating a true market-driven lending environment. The lower your rate, the higher your chance of being affected by redemptions, setting the stage for DeFi’s reference rate to emerge.
- Multi-Collateral Support: Liquity V2 allows for multiple collateral assets, each with its own Stability Pool. You can mint BOLD with ETH, Lido’s wrapped staked ETH, and Rocket Pool ETH.
- Protocol Incentivized Liquidity (PIL): 25% of all protocol revenue is directed towards sustainable liquidity initiatives, voted on by LQTY stakers. This ensures deep liquidity from day one without compromising on Liquity’s commitment to immutable smart contracts.
Try It Today
The testnet deployment is live here. You can find instructions on how to set up a Sepolia wallet for testing here. If you'd like a visual guide, we've created a YouTube playlist here.
Here's what you can test:
- Opening Troves with multiple collateral types
- Setting and adjusting your interest rates
- Depositing in Stability Pools to earn yield
- Managing multiple positions at once
Focus Areas
We're particularly interested in community feedback on:
- Interest rate management UX
- Position management UX
- Miscellaneous bugs and errors
Your feedback is very valuable - please provide it on this form, or hit us up on Discord.
The following are known issues or quirks:
- Asset price feeds are not 1:1 with their real values
- Opening leverage loans and closing with collateral can fail with larger amounts
- Error fetching data after un-delegating a loan’s interest rate management
A BOLD Future Awaits
This testnet release represents more than just new features – it's the foundation for a more efficient, user-driven DeFi ecosystem. By combining market-driven rates with sustainable protocol incentives, Liquity V2 sets a new standard for capital efficiency and stability in the CDP market.
Over the coming weeks, we'll be testing the system, gathering community feedback, and publishing our security audits for your review. These crucial steps will help ensure a smooth and secure mainnet launch.
The future of DeFi isn't just bright – it's BOLD.
