Liquity V2

Liquity V2 is a lending protocol that allows you to borrow against your ETH and Liquid Staking Tokens (rETH and wstETH only), and mint the BOLD stablecoin that:

• inherits LUSD resilience,

• provides sustainable yield,

• has minimal centralized risk, and

• benefits from improved peg dynamics.

With Liquity V2, you no longer have to depend on fixed governance rules for your borrowing costs. You can set your interest rate based on market conditions and risk tolerance.

Below you can find a breakdown of the main differences between Liquity V1 and Liquity V2:

Liquity	V2	V1
Collateral	ETH & LSTs	ETH
Interest rate	User-set rate	One-time 0.5% fee
Maximum LTV	Up to 91%	91%
Recovery mode	No recovery mode	150%
Liquidation ratio	~91% (depending on the coll.)	~91% (66% in recovery mode)
Liquidation penalty	~5% (exeptionally 10%)	~10%
Redemptions	Yes (less frequent)	Yes
Redemption logic	Starting from low interest rate Troves	Starting from high LTV Troves
Redemption fee	Goes to the affected borrower	Goes to LQTY stakers
Troves transferrable	ERC-721	No