Liquity V2 goes live tomorrow together with instant DFS support.
We're super excited about this launch and here's why:
Liquity V1 launched in April 2021 and reached $4.5B in TVL (over 1.2m
$ETH at the time!) a mere month and a half later. This was a fully immutable DeFi protocol providing borrowing and leverage for ETH holders while also introducing LUSD, as one of the best DeFi stablecoins seen yet.
With V1 it took us over 2 months to add support, though we're proud to highlight we still became one of the most popular frontends for Liquity, thanks to constant shipping of new tools for Liquity users.
There won't be any such delays this time around, however: our Liquity V2 support will go live in parallel with the protocol launch.
And yes it will have all our signature features, including a custom dasboard, 1-tx leverage management features, multiple automation options, as well as Loan Shifter support at launch.
While V1 succumbed to the pressure of ever changing conditions in the DeFi space due to its static design around borrow fees, V2 introduces new mechanics that should make V2 and
$BOLD resilient no matter the broader market conditions.
Here are our 4 favourite changes in V2 for lenders:
1. User set interest rates
The largest change in V2 is the ability for users to set their own interest rate, effectively allowing the whole protocol to adjust to changing ecosystem and market conditions.
2. New collateral types
While V1 only had the option of borrowing against ETH, V2 introduces support for most popular LSTs, too, with both
@LidoFinance's
$wstETH and
@Rocket_Pool's
$rETH available.
3. Multiple Troves per account
Users in V1 were limited to one, single Trove per account, but thankfully V2 allows creating and owning multiple no matter if they're the same or different collateral types.
4. Multiple stability pools
Liquity V2 introduces a separate stability pool for each of the supported collaterals. And given that V2 redirects all revenue towards growing the stablecoin, it might even happen that arbitrage opportunities arise between different collaterals and different stability pools.
These are just a few things we like, but we also recommend checking out changes around
$BOLD and V2 forkonomics to get a more complete picture of the new Liquity.
Tomorrow will be a bold new day - see you all on mainnet soon.