# BOLD > BOLD is a decentralized, USD-pegged stablecoin issued by the Liquity V2 protocol. It is overcollateralized exclusively by WETH, wstETH, and rETH, designed to be... - Canonical URL: https://iq.wiki/wiki/bold - Categories: Cryptoassets - Tags: Infrastructure - Created: 2025-11-15T05:35:07.868Z - Last updated: 2025-11-15T05:35:07.868Z - Source: IQ.wiki — the world's largest blockchain and crypto encyclopedia (https://iq.wiki) --- **BOLD** is a decentralized, USD-pegged [stablecoin](https://iq.wiki/wiki/stablecoin) issued by the [Liquity](https://iq.wiki/wiki/liquity) V2 protocol. It is designed for resilience by being fully overcollateralized and backed exclusively by crypto-native assets, including [Wrapped Ether (WETH)](https://iq.wiki/wiki/weth-wrapped-eth), [Lido Wrapped Staked Ether (wstETH)](https://iq.wiki/wiki/wrapped-steth-wsteth), and [Rocket Pool ETH (rETH)](https://iq.wiki/wiki/reth). The [stablecoin's](https://iq.wiki/wiki/stablecoin) architecture is founded on principles of immutability, complete on-chain operation without reliance on [real-world assets (RWAs)](https://iq.wiki/wiki/real-world-assets-rwas) or centralized custodians, and direct redeemability for its underlying collateral. [\[1\]](#cite-id-2hCNMrfcdtAojk6g) [\[2\]](#cite-id-gBluRDcfYI8cOwJp) [\[3\]](#cite-id-rLdWOyGMRxbdRnNm)​ ## Overview BOLD was created within the [Liquity](https://iq.wiki/wiki/liquity) V2 ecosystem to provide a decentralized and robust [stablecoin](https://iq.wiki/wiki/stablecoin) for the [decentralized finance (DeFi)](https://iq.wiki/wiki/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](https://iq.wiki/wiki/real-world-assets-rwas) by using only on-chain, decentralized assets as collateral. A core tenet of the BOLD [stablecoin](https://iq.wiki/wiki/stablecoin) is its immutability. The [smart contracts](https://iq.wiki/wiki/smart-contract) 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](https://iq.wiki/wiki/liquity) AG, state that the protocol "is immutable, unstoppable, and will run until [Ethereum](https://iq.wiki/wiki/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. [\[2\]](#cite-id-gBluRDcfYI8cOwJp)​[\[1\]](#cite-id-2hCNMrfcdtAojk6g)​[\[3\]](#cite-id-rLdWOyGMRxbdRnNm)​ ## Ecosystem and Utility ### Borrowing and Leveraging * **Borrow:** Users can [mint](https://iq.wiki/wiki/minting) BOLD by depositing one of the approved collateral assets ([WETH](https://iq.wiki/wiki/weth-wrapped-eth), [wstETH](https://iq.wiki/wiki/wrapped-steth-wsteth), or [rETH](https://iq.wiki/wiki/reth)) into a vault. This allows users to access liquidity in the form of a [stablecoin](https://iq.wiki/wiki/stablecoin) without selling their underlying ETH-based assets. [\[2\]](#cite-id-gBluRDcfYI8cOwJp) * **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. [\[2\]](#cite-id-gBluRDcfYI8cOwJp) ### Stability Pools ​[Liquity](https://iq.wiki/wiki/liquity) V2's Stability Pool architecture is an evolution from its first version. While [Liquity](https://iq.wiki/wiki/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. [\[3\]](#cite-id-rLdWOyGMRxbdRnNm) ### Protocol Incentivized Liquidity (PIL) and Fork Rewards To ensure deep liquidity for BOLD on external [decentralized exchanges (DEXs)](https://iq.wiki/wiki/decentralized-exchange), the protocol utilizes a mechanism called Protocol Incentivized Liquidity (PIL). Through this system, the [Liquity](https://iq.wiki/wiki/liquity) governance token (LQTY) is used to direct incentives to liquidity providers on key trading venues. Additionally, the protocol design includes "[Fork](https://iq.wiki/wiki/fork) Rewards," a feature that allows projects forking the [Liquity](https://iq.wiki/wiki/liquity) V2 codebase to distribute rewards to BOLD users, creating another potential source of value for holders. [\[3\]](#cite-id-rLdWOyGMRxbdRnNm) [\[2\]](#cite-id-gBluRDcfYI8cOwJp)​ ## 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](https://iq.wiki/wiki/market-capitalization) and fully diluted valuation were both $ ### Liquidity and Trading BOLD is primarily traded on [decentralized exchanges](https://iq.wiki/wiki/decentralized-exchange) across the [Ethereum](https://iq.wiki/wiki/ethereum) ecosystem. Key trading venues for BOLD liquidity include: * **Ethereum:** Curve, [Uniswap](https://iq.wiki/wiki/uniswap) (V3 & V4), [Balancer](https://iq.wiki/wiki/balancer) V3 * **Base:** [Aerodrome Finance](https://iq.wiki/wiki/aerodrome-finance) * **Optimism:** [Velodrome Finance](https://iq.wiki/wiki/velodrome-finance) V2 [\[1\]](#cite-id-2hCNMrfcdtAojk6g) ### Access and Frontends Users interact with the [Liquity](https://iq.wiki/wiki/liquity) V2 protocol to [mint](https://iq.wiki/wiki/minting), 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 [\[2\]](#cite-id-gBluRDcfYI8cOwJp)