Dashboard & Use-case
Users that are looking for a fully decentralized lending option will already find their use-case with Liquity V2.
BOLD is Liquity’s decentralized native stablecoin with the following key features:
Redeemable at any point, making it as liquid as the protocol’s underlying collateral
Free from real-world assets and off-chain risks
100% of the generated yield circles back to Stability Pool depositors and liquidity providers, where the yield is in BOLD and ETH, with no reliance on emissions or governance tokens
Yield generation through forks and sBOLD (sBOLD is a yield-bearing token that compounds ETH rewards back into BOLD from Stability Pools)
Through our interface, it's also possible to use the borrowed BOLD and stake it within Liquity V2's stability pool. In turn, users get LQTY tokens and the rights to liquidation rewards from the stability pool.
This isn't the finish line though, as users can then stake the LQTY tokens to earn redemption and borrow fees from the protocol.
Outside of this capital efficiency, Liquity V2's BOLD can be redeemed at any point for an exact 1:1 value ratio with USD.
As opposed to Liquity V1's one-time borrowing fee, Liquity V2 introduced user-set interest rates which dictate how close a Trove is to redemption using a metric known as Debt-in-front.
In this article, we'll outline how you can open a position, and also stake your BOLD/LQTY. To start, let's look at how users can create a position:
Show me how:
The first step would be navigating to the Liquity V2 dashboard by clicking its icon in the sidebar:
You'll land on the "Manage" tab by default, but you'll also have the:
Automate tab, which gives you access to automation options.
Stake Tab
Notify tab, which lets you set custom-tailored notifications for your position.
History tab, which gives you a history of actions that you took within your Liquity V2 Trove.
We've now covered the basics of Liquity's dashboard, so you're now ready to open a position. Let's dive right into how you can do that.
Clicking the "Create Trove" button will take you to a new tab:
The interface is pretty straightforward - You'll be able to:
Input the amount of collateral you'd like to supply
Input the amount of BOLD you'd like to borrow
Set your interest rate
View your position's metrics before opening it (including Debt-in-front)
If you'd rather opt to open a Leverage position, simply click on the "Leverage" tab:
The interface is a bit more complex than the first due to the nature of leveraging. Here, you can:
Input the amount of collateral you'd like to supply.
Input the amount of BOLD you'd like to borrow
Adjust the interest rate
The leverage amount
The slippage limit
View your position's metrics before opening it (including Debt-in-front)
Whether you're ready to open a Borrow or Leverage position - the finishing touch will be clicking "Create":
If the transaction succeeds, you'll see the pop-up from above. You can feel free to press "Done" if you're not yet interested in turning on Automations.
Now that the position is opened, the "Manage" tab will look like this:
The final part of the dashboard we'll cover are the manual management tools:
Under the "Leverage" tab, you'll find:
Boost - This tool is used to increase your exposure to the collateral asset when the safety ratio of your position increases. It does this by borrowing more LUSD, swapping it to ETH, and supplying it to your current position.
Repay - This tool is used to increase the safety ratio of your position by swapping part of your collateral asset in order to repay part of the debt.
Under the "Add/Remove" tab, you'll find basic actions such as:
Supply - This tool is used to add more collateral to your position in order to increase the safety ratio.
Withdraw - This tool is used to withdraw collateral from your position, in turn decreasing your safety ratio
Borrow BOLD - This tools is used to borrow more of the debt asset from your current position, in turn decreasing your safety ratio.
Pay back BOLD - This tool is used to pay back part of (or the entirety) of your debt, in turn increasing your safety ratio.
Underneath, you'll find "Combine with another action" - where you can click on any of the available options to add another action to your transaction:
Before executing any of these actions, the dashboard will provide you with updated metrics for your position based on the values you've input:
You're now well equipped to efficiently manage your Compound position on DeFi Saver!
An open position on Liquity V2 means you're now holding BOLD - so let's see how you can put it to use on DeFi Saver:
Staking BOLD/LQTY on DeFi Saver:
Staking on Liquity V2 is very straightforward:
Simply visit the main Liquity V2 dashboard and click the "Stake" tab:
This will take you to a new tab where you'll be able to choose the type of staking you'd like to do:
In this example, we stake $4,000 BOLD into the sBOLD vault by inputting the amount and clicking "Stake":
The process is the exact same with staking LQTY. Additionally, once we've staked, we'll be able to see the staked amount on the "Portfolio" page:
One of the main benefits of utilizing DeFi Saver's service is access to our automation options that maintain your position based on your personal inputs. Liquity V2 currently supports all of DeFi Saver's automations, meaning that opening a position with it gives you access to a plethora of automations. On top of this, we offer Liquity V2-exclusive automations such as Bonds Liquidation Protection and Redemption Protection.
Closing your Trove:
If you decide to close down your current position, the steps are extremely straightforward:
Navigate to the main dashboard:
Select the "Close" button - located just right of the "Create" button:
Choose how you'd like to close your position.
Since closing from your position involves swaps, you can also (optionally) set the slippage limit.
Press "Close Liquity V2 Trove"
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