BOLD (BOLD)

The Liquity model allows users to borrow BOLD by depositing supported collateral such as ETH and liquid staking tokens including wstETH and rETH. Borrowers must keep their positions overcollateralised, with a minimum collateral ratio of 110%. This structure is intended to protect the peg and reduce insolvency risk during market volatility, although users remain exposed to liquidation if their collateral value falls too far.

A distinctive feature of the system is that borrowers can set their own interest rates. These rates influence the attractiveness and ordering of loans in the protocol, creating a market-based mechanism for credit pricing rather than relying entirely on a centrally determined rate. BOLD loans are also supported by a Stability Pool, where users deposit BOLD that can be used to absorb liquidations and help keep the protocol solvent.

The stablecoin is part of Liquity’s broader effort to provide decentralised, non-custodial borrowing without traditional intermediaries. BOLD’s role is therefore twofold: it acts as a dollar-denominated unit of account for borrowers and as a core liquidity instrument for participants who provide stability to the protocol.