BOLD is a decentralized, USD-pegged stablecoin issued by the Liquity V2 protocol. It is designed for resilience by being fully overcollateralized and backed exclusively by crypto-native assets, including Wrapped Ether (WETH), Lido Wrapped Staked Ether (wstETH), and Rocket Pool ETH (rETH). The stablecoin's architecture is founded on principles of immutability, complete on-chain operation without reliance on real-world assets (RWAs) or centralized custodians, and direct redeemability for its underlying collateral. ^{[1] [2] [3]}​

Overview

BOLD was created within the Liquity V2 ecosystem to provide a decentralized and robust stablecoin for the decentralized finance (DeFi) sector. It aims to maintain a stable value pegged to the US Dollar through a combination of overcollateralization, arbitrage incentives, and a unique interest rate mechanism. The protocol's design explicitly avoids counterparty risk associated with centralized entities and the regulatory complexities of RWAs by using only on-chain, decentralized assets as collateral. A core tenet of the BOLD stablecoin is its immutability. The smart contracts governing the protocol are not subject to governance-led upgrades or changes to its collateral types, a feature intended to offer users long-term predictability and trust in the system’s mechanics. The project's developers, Liquity AG, state that the protocol "is immutable, unstoppable, and will run until Ethereum does." This design ensures that all protocol revenue, generated from borrowing fees and liquidations, is distributed directly to BOLD users who stake or provide liquidity. ^[2]​^[1]​^[3]​

Ecosystem and Utility

Borrowing and Leveraging

• Borrow: Users can mint BOLD by depositing one of the approved collateral assets (WETH, wstETH, or rETH) into a vault. This allows users to access liquidity in the form of a stablecoin without selling their underlying ETH-based assets. ^[2]
• Multiply: The protocol includes a "Multiply" feature that enables users to gain leveraged long exposure to their collateral. In a single transaction, users can take out a BOLD loan, use the BOLD to acquire more of the same collateral, and deposit it back into their vault, achieving up to 11x leverage on their initial deposit. ^[2]

Stability Pools

​Liquity V2's Stability Pool architecture is an evolution from its first version. While Liquity V1 used a single, commingled Stability Pool, V2 introduced multiple, separate pools—one for each type of accepted collateral. This design serves two main purposes:

• Risk Compartmentalization: It allows BOLD depositors to choose which pool to deposit into, thereby selecting their exposure to a specific collateral asset in the event of liquidations.
• Independent Markets: It establishes distinct borrowing markets for each collateral type, each with its own market-driven interest rate. ^[3]

Protocol Incentivized Liquidity (PIL) and Fork Rewards

To ensure deep liquidity for BOLD on external decentralized exchanges (DEXs), the protocol utilizes a mechanism called Protocol Incentivized Liquidity (PIL). Through this system, the Liquity governance token (LQTY) is used to direct incentives to liquidity providers on key trading venues. Additionally, the protocol design includes "Fork Rewards," a feature that allows projects forking the Liquity V2 codebase to distribute rewards to BOLD users, creating another potential source of value for holders. ^{[3] [2]}​

Tokenomics

$BOLD’s token supply structure is defined by a circulating and total supply of 46,113,724 tokens, with no maximum supply limit. The token’s market capitalization and fully diluted valuation were both $

Liquidity and Trading

BOLD is primarily traded on decentralized exchanges across the Ethereum ecosystem. Key trading venues for BOLD liquidity include:

• Ethereum: Curve, Uniswap (V3 & V4), Balancer V3
• Base: Aerodrome Finance
• Optimism: Velodrome Finance V2 ^[1]

Access and Frontends

Users interact with the Liquity V2 protocol to mint, redeem, or earn yield with BOLD through various independent frontends developed and hosted by the community. Notable frontends include:

• Liquity.App
• DeFi Saver
• LQTY.IO
• Floe Fund
• LiquityV2.com ^[2]