Liquity details immutable protocol and B-1 Token Transparency Filing

by@Blockworks

Summary

Liquity has launched its immutable V2 protocol, which allows users to borrow against ETH and staked ETH by minting a stablecoin called BOLD, redeemable for $1 of collateral. This decentralized borrowing mechanism emphasizes transparency and security, as the protocol operates entirely on-chain with no administrative powers to make changes or upgrades. In its recent B-1 Token Transparency Filing, Liquity disclosed that 98.5% of its $LQTY supply is currently circulating, and there are no market-making agreements or exchange listing deals in place, reinforcing its focus on decentralization. Additionally, while LQTY stakers can vote weekly on directing 25% of the protocol's revenue toward incentives, they have no power to change any other protocol parameters or access treasury resources.

Tokens

$LQTY$BOLD

Analysis

BOLD: BOLD is the Ethereum-native stablecoin issued by the Liquity protocol, minted by users against ETH, wstETH, and rETH collateral at a borrower-chosen interest rate and redeemable for one dollar's worth of protocol collateral. BOLD serves as the primary medium for liquidity and can be staked to receive protocol revenues, with no governance or admin functions. The token is highlighted in Liquity's recent B-1 filing as part of the immutable V2 design. Liquity: Liquity is a decentralized borrowing and stablecoin protocol on Ethereum focused on allowing users to borrow against ETH and staked ETH collateral. Liquity V2 is fully immutable with no admin keys, pauses, upgrades, DAO, or foundation control over the protocol, and the sole external dependency is price oracles. The project recently published a B-1 Token Transparency Filing with Blockworks that details its market structure, prior SAFT raises, and governance limitations. Liquity AG: Liquity AG is the Swiss entity associated with the early development of the Liquity protocol. It holds no protocol powers, administrative roles, or control over the immutable V2 contracts, as confirmed in the project's recent token transparency filing. Governance: LQTY stakers can direct 25% of protocol revenue to incentives via weekly votes but hold no ability to alter protocol parameters or access treasury resources. Immutability: Liquity V2 operates entirely on-chain as an immutable protocol with no possibility of changes, pauses, or upgrades by any party. Transparency Filing: The B-1 filing discloses no market maker agreements, exchange listing deals, or airdrops, with both market maker and exchange sections marked partial due to non-disclosure.

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