{
  "$schema": "https://degreesofsatoshi.com/encyclopedia/schemas/article-v1.json",
  "schemaVersion": "1.0.0",
  "id": "what-is-bold",
  "canonical": "https://degreesofsatoshi.com/encyclopedia/what-is-bold/",
  "collection": "stablecoins",
  "title": "What is BOLD? Liquity V2’s stablecoin",
  "description": "Understand Liquity V2’s BOLD stablecoin, collateral branches and user-set borrowing rates, including how redemptions can affect low-rate Troves.",
  "aliases": [
    "what is bold",
    "What is BOLD Liquity V2’s stablecoin"
  ],
  "dates": {
    "published": "2026-10-02",
    "modified": "2026-10-02",
    "verified": "2026-10-02T19:26:58.461Z",
    "dataAsOf": "2026-10-02"
  },
  "authorship": {
    "publisher": "Degrees of Satoshi editorial project",
    "process": "AI-assisted research and drafting with a separate automated source-verification pass; no external expert or named human review is implied."
  },
  "quickAnswer": {
    "text": "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.",
    "claimId": "what-is-bold-quick-answer",
    "sourceIds": [
      "x425-sc-bold",
      "x425-sc-bold-redemption"
    ]
  },
  "keyFacts": [
    {
      "label": "Version",
      "value": "BOLD is the V2 stablecoin, distinct from V1 LUSD.",
      "sourceIds": [
        "x425-sc-bold"
      ],
      "id": "version",
      "claimId": "what-is-bold-fact-version"
    },
    {
      "label": "Rates",
      "value": "V2 permits user-set borrowing interest rates.",
      "sourceIds": [
        "x425-sc-bold"
      ],
      "id": "rates",
      "claimId": "what-is-bold-fact-rates"
    },
    {
      "label": "Ordering",
      "value": "Redemptions begin with lower-interest Troves within the applicable collateral market.",
      "sourceIds": [
        "x425-sc-bold-redemption"
      ],
      "id": "ordering",
      "claimId": "what-is-bold-fact-ordering"
    }
  ],
  "prerequisites": [
    "crypto-backed-stablecoins",
    "liquid-staking"
  ],
  "sections": [
    {
      "id": "branches",
      "heading": "Collateral types create distinct exposures",
      "sourceIds": [
        "x425-sc-bold"
      ],
      "paragraphs": [
        "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."
      ]
    },
    {
      "id": "rate",
      "heading": "A low borrowing rate has another consequence",
      "sourceIds": [
        "x425-sc-bold-redemption"
      ],
      "paragraphs": [
        "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."
      ]
    },
    {
      "id": "redeem",
      "heading": "The protocol chooses a collateral mix",
      "sourceIds": [
        "x425-sc-bold-redemption"
      ],
      "paragraphs": [
        "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."
      ]
    }
  ],
  "faq": [
    {
      "question": "Can a BOLD holder demand US dollars from a central issuer?",
      "answer": "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.",
      "sourceIds": [
        "x425-sc-bold-redemption"
      ]
    }
  ],
  "claims": [
    {
      "id": "what-is-bold-quick-answer",
      "articleSlug": "what-is-bold",
      "statement": "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.",
      "sourceIds": [
        "source-343f9861b9d0b4a3",
        "source-02b3823273839ba0"
      ],
      "sourceLocators": [
        {
          "sourceId": "source-343f9861b9d0b4a3",
          "locator": "Differences to V1; collateral; interest"
        },
        {
          "sourceId": "source-02b3823273839ba0",
          "locator": "Collateral split; lowest-interest Troves"
        }
      ],
      "scope": {
        "collection": "stablecoins",
        "dataAsOf": "2026-10-02",
        "blockHeight": null
      },
      "qualification": "",
      "evidenceStatus": "documented",
      "verification": {
        "status": "verified",
        "method": "independent automated source review",
        "checkedAt": "2026-10-02T19:26:58.461Z",
        "reviewer": "Independent automated verification — Codex DeFi agent, separate from the stablecoin drafting agent",
        "notes": "Liquity V2 branch debt minus Stability Pool and lowest-rate ordering checked. Collateral mix and fees separated from bank-dollar redemption."
      }
    },
    {
      "id": "what-is-bold-fact-version",
      "articleSlug": "what-is-bold",
      "statement": "Version: BOLD is the V2 stablecoin, distinct from V1 LUSD.",
      "sourceIds": [
        "source-343f9861b9d0b4a3"
      ],
      "sourceLocators": [
        {
          "sourceId": "source-343f9861b9d0b4a3",
          "locator": "Differences to V1; collateral; interest"
        }
      ],
      "scope": {
        "collection": "stablecoins",
        "dataAsOf": "2026-10-02",
        "blockHeight": null
      },
      "qualification": "",
      "evidenceStatus": "documented",
      "verification": {
        "status": "verified",
        "method": "independent automated source review",
        "checkedAt": "2026-10-02T19:26:58.461Z",
        "reviewer": "Independent automated verification — Codex DeFi agent, separate from the stablecoin drafting agent",
        "notes": "Liquity V2 branch debt minus Stability Pool and lowest-rate ordering checked. Collateral mix and fees separated from bank-dollar redemption."
      }
    },
    {
      "id": "what-is-bold-fact-rates",
      "articleSlug": "what-is-bold",
      "statement": "Rates: V2 permits user-set borrowing interest rates.",
      "sourceIds": [
        "source-343f9861b9d0b4a3"
      ],
      "sourceLocators": [
        {
          "sourceId": "source-343f9861b9d0b4a3",
          "locator": "Differences to V1; collateral; interest"
        }
      ],
      "scope": {
        "collection": "stablecoins",
        "dataAsOf": "2026-10-02",
        "blockHeight": null
      },
      "qualification": "",
      "evidenceStatus": "documented",
      "verification": {
        "status": "verified",
        "method": "independent automated source review",
        "checkedAt": "2026-10-02T19:26:58.461Z",
        "reviewer": "Independent automated verification — Codex DeFi agent, separate from the stablecoin drafting agent",
        "notes": "Liquity V2 branch debt minus Stability Pool and lowest-rate ordering checked. Collateral mix and fees separated from bank-dollar redemption."
      }
    },
    {
      "id": "what-is-bold-fact-ordering",
      "articleSlug": "what-is-bold",
      "statement": "Ordering: Redemptions begin with lower-interest Troves within the applicable collateral market.",
      "sourceIds": [
        "source-02b3823273839ba0"
      ],
      "sourceLocators": [
        {
          "sourceId": "source-02b3823273839ba0",
          "locator": "Collateral split; lowest-interest Troves"
        }
      ],
      "scope": {
        "collection": "stablecoins",
        "dataAsOf": "2026-10-02",
        "blockHeight": null
      },
      "qualification": "",
      "evidenceStatus": "documented",
      "verification": {
        "status": "verified",
        "method": "independent automated source review",
        "checkedAt": "2026-10-02T19:26:58.461Z",
        "reviewer": "Independent automated verification — Codex DeFi agent, separate from the stablecoin drafting agent",
        "notes": "Liquity V2 branch debt minus Stability Pool and lowest-rate ordering checked. Collateral mix and fees separated from bank-dollar redemption."
      }
    }
  ],
  "sources": [
    {
      "id": "x425-sc-bold",
      "label": "Liquity V2 overview",
      "publisher": "Liquity",
      "url": "https://docs.liquity.org/v2-faq",
      "locator": "Differences to V1; collateral; interest",
      "note": "BOLD token, user-set borrowing rates and multiple collateral types.",
      "version": "Document retrieved 2026-10-02; content hash recorded",
      "checkedAt": "2026-10-02T18:51:09.526Z",
      "contentSha256": "6a89ad55847404c5a22857f64c60892e685fbb0e1905e5b369b048b24b00b8b2",
      "recordId": "source-343f9861b9d0b4a3"
    },
    {
      "id": "x425-sc-bold-redemption",
      "label": "Liquity V2 redemptions and delegation",
      "publisher": "Liquity",
      "url": "https://docs.liquity.org/v2-faq/redemptions-and-delegation",
      "locator": "Collateral split; lowest-interest Troves",
      "note": "BOLD redemption allocation and borrower-rate ordering; collateral is not fiat.",
      "version": "Document retrieved 2026-10-02; content hash recorded",
      "checkedAt": "2026-10-02T18:51:09.432Z",
      "contentSha256": "9be19acaeecd3d3bf6f0b53d54c6164943338508a4f3753b0e91b3b1b04af206",
      "recordId": "source-02b3823273839ba0"
    }
  ],
  "related": {
    "articles": [
      "what-is-lusd",
      "stablecoin-off-ramps",
      "wrapped-staked-ether",
      "what-is-frxusd"
    ],
    "dossiers": [],
    "wallets": []
  },
  "revisionHistory": [
    {
      "date": "2026-10-02",
      "kind": "published",
      "summary": "First publication after primary-source research and separate automated verification."
    }
  ],
  "citation": "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/"
}