Troves as NFTs

In Liquity V2, Troves are now represented as NFTs (ERC-721), which allows a seamless migration between wallets (both smart wallets and EOAs), management of multiple Troves from a single wallet, and enabling direct sales of positions on secondary markets (like OpenSea).

Transferring the NFT transfers full ownership of the Trove, including the debt, collateral, and associated settings like interest rates (that also further simplifies ownership delegation).

What is a zombie Trove?

A zombie Trove occurs when a redemption reduces a Trove's debt below the minimum threshold of 2,000 BOLD (or even to zero).

These Troves remain open but inactive, meaning the owner must close the Trove to withdraw any remaining collateral or increase the debt back to the minimum required amount.

Until then, Trove cannot be used for other actions.