Overview

Liquity is a decentralized borrowing protocol that introduces a non-custodial, immutable platform for users to borrow its native stablecoin, BOLD, using ETH or liquid staking tokens (LSTs) such as wstETH and rETH as collateral. Building on the foundation of Liquity V1 and its LUSD stablecoin, Liquity V2 offers enhanced flexibility by enabling users to set their own borrowing rates without governance or algorithmic control. The protocol introduces the concept of Troves, customizable vaults with adjustable collateral and debt, empowering borrowers to manage loans with no lock-up period or repayment schedule, as long as the Loan-to-Value (LTV) remains within safe limits. Liquity supports multiple features including 1-click ETH multiplication via flash loans, earning yield through Stability Pool deposits, and incentivized liquidity provision via external DEXes. BOLD holders can earn yield in BOLD or ETH by participating in various pools, while LQTY token holders enjoy governance rights and dual rewards from both Liquity V1 and V2 ecosystems. With no central frontend, users access the protocol through community integrations, reinforcing its decentralized nature. Liquity V2 is designed to be highly secure, decentralized, and optimized for self-directed borrowing, lending, and liquidity provision.

Whitepaper & Documents