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Encyclopedia Stablecoins · Entry 313

What is BOLD? Liquity V2’s stablecoin

AI-assisted research · separate automated verificationCorrections

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Stablecoins
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2 cited records
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In this article

At a glance

Key facts

Key facts for What is BOLD? Liquity V2’s stablecoin
FactDetailSource
VersionBOLD is the V2 stablecoin, distinct from V1 LUSD.[1]
RatesV2 permits user-set borrowing interest rates.[1]
OrderingRedemptions begin with lower-interest Troves within the applicable collateral market.[2]
01

Collateral types create distinct exposures

Liquity V2 supports ETH and liquid-staking collateral types. These are not identical assets: a liquid-staking token adds its own staking and implementation dependencies. Identify the branch backing a borrowing position instead of treating all collateral as interchangeable ETH.

Holding BOLD itself is also different from opening a Trove or depositing into another BOLD product. Each action creates a different relationship to the system.

02

A low borrowing rate has another consequence

Redemption ordering begins with lower-rate Troves within each collateral market. A borrower choosing a lower rate therefore changes more than the interest bill; they can move closer to the front of that ordering.

For a conceptual comparison, a 2% Trove can be reached before a 4% Trove in the same market under the documented ordering. These are hypothetical rates and do not predict when a redemption will occur.

03

The protocol chooses a collateral mix

The documentation allocates redemptions across collateral branches using their outside debt, which is debt minus the corresponding Stability Pool balance. The redeemer receives the resulting collateral mix after fees rather than freely selecting any one asset.

Redemption can reduce a borrower’s collateral and debt without being the same event as liquidation. A borrower should inspect both the redemption mechanism and health constraints. This description is scoped to the V2 documents checked on 2 October 2026.

Direct answers

Questions people ask

Can a BOLD holder demand US dollars from a central issuer?

The protocol redemption described here delivers collateral under Liquity V2 rules. It is not the same as direct fiat redemption of a cash-backed issuer stablecoin. Selling into bank money requires a separate route.

Inspect the evidence

The answer and key facts have stable claim links. These records retain the scope and qualification when reused.

BOLD is Liquity V2’s dollar-referenced stablecoin, minted against supported ETH and liquid-staking collateral. Borrowers choose interest rates, which also affect their position in redemption ordering. Protocol redemption returns collateral under the system’s allocation rules, not bank dollars, and is different from a borrower repaying their own loan.

Scope: Stablecoins · data through 2026-10-02. Verification: verified · 2026-10-02T19:26:58.461Z.

Link to this claim
Version: BOLD is the V2 stablecoin, distinct from V1 LUSD.

Scope: Stablecoins · data through 2026-10-02. Verification: verified · 2026-10-02T19:26:58.461Z.

Link to this claim
Rates: V2 permits user-set borrowing interest rates.

Scope: Stablecoins · data through 2026-10-02. Verification: verified · 2026-10-02T19:26:58.461Z.

Link to this claim
Ordering: Redemptions begin with lower-interest Troves within the applicable collateral market.

Scope: Stablecoins · data through 2026-10-02. Verification: verified · 2026-10-02T19:26:58.461Z.

Link to this claim
Revision history
  1. — First publication after primary-source research and separate automated verification.

Source register

Sources and references

Retrieval dates and locators are recorded individually.
  1. Liquity V2 overviewLiquity

    BOLD token, user-set borrowing rates and multiple collateral types.

    Locator: Differences to V1; collateral; interest · Version / scope: Document retrieved 2026-10-02; content hash recorded · Retrieved: 2026-10-02T18:51:09.526ZOpen source
  2. Liquity V2 redemptions and delegationLiquity

    BOLD redemption allocation and borrower-rate ordering; collateral is not fiat.

    Locator: Collateral split; lowest-interest Troves · Version / scope: Document retrieved 2026-10-02; content hash recorded · Retrieved: 2026-10-02T18:51:09.432ZOpen source
How this article was made

Research and drafting use AI assistance. A separate automated review checks claims against primary sources; no external expert or named human review is implied. Publication, substantive editing, source retrieval and verification are recorded separately. This version was independently checked by an automated reviewer on 2 October 2026.

Editorial method and corrections

Degrees of Satoshi editorial project. “What is BOLD? Liquity V2’s stablecoin.” Published 2026-10-02; updated 2026-10-02. https://degreesofsatoshi.com/encyclopedia/what-is-bold/