Liquity releases details on v2 BOLD stability pool opportunities: "Will behave similarly to money markets but with opposite spreads: depending on the utilization and integration of BOLD in the broader DeFi ecosystem, the Stability Pool will generally exceed the average borrow rates"

Liquity has published a detailed explainer of the BOLD Stability Pool in its forthcoming Liquity v2 protocol, outlining how depositors (“Earners”) can earn yield and how the mechanism differs from traditional DeFi money markets. In Liquity v2, users deposit the protocol’s new USD-pegged stablecoin BOLD into Stability Pools associated with specific collateral types (WETH, wstETH, rETH), and those deposits are used to automatically absorb undercollateralized debt when borrowers are liquidated. In return, Stability Pool depositors receive liquidated collateral at a discount plus a large share of interest paid by borrowers, making the pool both the primary liquidation backstop and the main yield venue for BOLD holders. The team emphasizes that Liquity v2 will “behave similarly to money markets but with opposite spreads”: because roughly 75% of interest revenue from each borrow market is routed to that market’s Stability Pool, the Stability Pool yield is expected, on average, to exceed borrowers’ interest rates, a structure that contrasts with typical lending markets where lenders earn less than borrowers pay. Each collateral asset has its own isolated Stability Pool and borrow market, so depositors choose their preferred pool based on expected yield and desired exposure to the associated collateral, while liquidation penalties borne by borrowers (around 5%) create additional upside for depositors via discounted ETH or LST gains. Liquity frames this design as a way to offer sustainable, “real” yield without protocol token emissions or lockups, while strengthening solvency and capital efficiency around BOLD in the broader DeFi ecosystem.

✨ AI-generated background, compiled from web sources — not editorial content.

More coverage

• Earning with BOLD Liquity v2 will provide stablecoin holders with: (x.com)
• BOLD & Earn | Liquity Docs (docs.liquity.org)
• V2 Redeployment Updates - Liquity V2 (liquity.org)
• GitHub - liquity/bold: Liquity v2 monorepo containing the contracts ... (github.com)
• Understanding Liquity's Stability Pool (liquity.org)

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