Here you can find the latest information about the Stability Pool (“Earn”) issue.
The latest update is on the top.
March 13
Liquity V2 Redeployment Update and Audit Contest
We now have an updated timeline for the redeployment of Liquity V2!
Next Week: Publication of the updated and patched V2 codebase
March - April: Hosting of a multi-week audit competition
Q2: Redeployment of Liquity V2 on Mainnet
Since Liquity V2 will be deployed as an immutable protocol, it is of the utmost importance to ensure proper and safe functioning under all circumstances.
The issue found in V2 revealed how deeply hidden edge cases can be, and how sophisticated the approaches to uncover them must be.
We believe we can best address this by adding an extra level of scrutiny by doing an open audit competition on the deployment-ready codebase. Security must be the first priority of an immutable deployment, and thus we believe a minor postponement to be an acceptable tradeoff.
The competition will be held via an audit platform, with further details to be shared shortly.
Lastly, teams who are forking Liquity V2 will be free to proceed at their own cadence once the patched codebase has been made publicly available. These teams will have access to audit competition results, and any resulting patches needed to upgrade their mutable deployments.
Please note that these teams will only consider activity from the initial Liquity V2 deployment up until February 12th, when the initial notice of a potential SP issue was given, as eligible for reward programs.
Feb 21
Liquity V2 Redeployment in Mid-March. A fix for Liquity V2 has been developed, and auditors will begin their review at the end of next week. Once the audits are complete, Liquity V2’s redeployment is planned for mid-March.
What does this mean for current Liquity V2 users?
- The current deployment of Liquity V2 will become a legacy protocol
- Liquity V2 Stability Pool depositors should close their positions immediately.
- Liquity V2 Borrowers should close their loans while liquidity conditions for $BOLD remain favorable
- BOLD holders without a loan position should sell their BOLD.
Feb 18
A fix for the issue in the Stability Pools raised regarding Liquity V2 is in development, and audits are scheduled to begin at the end of next week.Liquity V2 will be redeployed, and users will be encouraged to reopen their positions on the new contracts.What does this mean for current users?
- Liquity V2 Stability Pool depositors should close their positions. Immediate action is strongly advised, as there is an issue that could result in the loss of funds held in these contracts.
- Liquity V2 Borrowers should close their loans while liquidity conditions for BOLD remain favorable.
- BOLD holders without a loan position should sell their BOLD (more below).
If BOLD is above $1, BOLD holders should consider:
- Selling their BOLD using Curve, Uniswap, Balancer or a dex aggregator
- Providing single sided liquidity on Uniswap in ranges which they find attractive
- Setting limit orders on aggregators like Cow Swap
Feb 13
Yesterday’s issue with the Stability Pools (“Earn”) on Liquity V2 has been confirmed.
Users are strongly advised to close their Stability Pool (“Earn”) positions in Liquity V2. To the team’s knowledge, no users have been impacted and the issue is isolated to the Stability Pool (“Earn”).
All other parts of the system are unaffected (“Borrow”, “Multiply” and “Stake”) and BOLD remains fully backed and redeemable.
The Liquity V2 protocol will be redeployed with a patch.
Feb 12
The Liquity team was informed of a potential issue affecting Liquity V2 Stability Pools (“Earn”), and is currently investigating a potential impact.
The team is currently working on confirming this potential issue and solutions. The protocol continues to work as expected and to the team’s knowledge the potential issue has not impacted any users.
Out of an abundance of caution, a Liquity V2 user should close their Stability Pool (“Earn”) positions.
Based on the current understanding, the following parts of the system aren’t affected:
- BOLD remains fully backed and redeemable
- Borrowers can withdraw their collateral assets
- Staked LQTY positions are not impacted
Disclaimer:
- It is strongly encouraged that all users interact with frontends which they have previously used.
- Liquity team members will not DM you, and there is no help desk or private support channel.
- Scammers may use this opportunity to try to steal your funds, please remain vigilant and only use official sources for information.
- Liquity V2 is fully permissionless, and the Liquity team does not maintain any administrative roles over the Liquity protocol. It is each user’s own responsibility to take appropriate actions when interacting with the Liquity protocol.
