BOLD Stablecoin

Users can mint BOLD by depositing ETH, wstETH, or rETH as collateral into the Liquity V2 protocol. The minimum collateral ratio required is 110%. Once minted, BOLD can be used in various ways:

• Borrowing: Users can borrow BOLD against their collateral.
• Earning Yield: By depositing BOLD into Stability Pools, users earn protocol revenue and liquidation proceeds.
• Liquidity Provision: Providing liquidity for BOLD on incentivized external DEXes.
• Staking LQTY: Users can stake LQTY to direct protocol incentives and earn rewards .

The supply of BOLD is dynamic and depends on user interactions with the protocol, such as borrowing and redemption activities.

BOLD is a crypto-backed stablecoin. Unlike fiat-backed stablecoins, BOLD is overcollateralized with crypto assets (ETH, wstETH, rETH) and operates without centralized control. It serves as a decentralized alternative to traditional stablecoins, offering users a way to maintain dollar-equivalent value within the DeFi ecosystem.

BOLD maintains its dollar peg through a combination of user-set interest rates and a redemption mechanism. When BOLD trades above $1, borrowers are incentivized to reduce their interest rates, making borrowing more attractive and increasing BOLD supply, which helps bring the price down. Conversely, when BOLD trades below $1, users can redeem BOLD for the underlying collateral, reducing supply and pushing the price up. This dynamic system allows BOLD to self-correct and maintain its peg without relying on centralized interventions.