Liquity V2: Whitepaper

We're thrilled to announce the release of the Liquity V2 Whitepaper, which can be found here.

Since its launch in April 2021, Liquity has operated exactly as designed: immutable, governed solely by code.

Liquity V2 not only upholds this legacy but also innovates on this through dynamic modifications that are geared to adapt towards any market condition.

The Whitepaper covers everything about Liquity V2 in more detail, including topics like:

User-set interest rates: A major innovation in V2 is allowing borrowers to set their own interest rates, empowering them to dictate their borrowing costs and balance risk and efficiency to their liking.

New collateral types - ETH and LSTs: Liquity V2 introduces LSTs as collateral in addition to ETH. This allows borrowers to leverage, while keeping their staking yields for more liquidity or leverage.

Earning opportunities with BOLD: A significant portion of the interest rates generated by the protocol goes towards BOLD Stability Pool depositors and liquidity providers. This ensures that BOLD continues to offer real yield, channeled through the sustainable revenues generated by the protocol itself. 

Separate borrow markets: Liquity V2 features separate borrow markets and Stability Pools for each collateral type. This helps each borrow market develop their own interest rate, while also compartmentalizing risk to better meet the diverse needs of users.

Multiple Troves capabilities: To enhance user convenience, it is now possible to manage multiple Troves from a single address.

Capital efficiency:  Liquity V2 operates without Recovery Mode. This ensures borrowers benefit from consistently high LTV, allowing for up to 11x leverage without the pressures of a system-wide stress state.

Explore all these features and more in depth in our Whitepaper here.

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