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What is Liquity?

Liquity is a decentralized borrowing protocol that allows users to mint BOLD, a USD-pegged stablecoin, by locking up ETH as collateral. What sets Liquity apart is its non-custodial, immutable, and governance-free architecture—meaning no centralized control, no upgrades, and no voting mechanisms.

Liquity offers one of the most capital-efficient lending models in DeFi, requiring a minimum collateral ratio of just 110%. This enables users to access liquidity with minimal overcollateralization, a key differentiator from most other lending protocols.

To maintain system stability, Liquity leverages a Stability Pool funded with BOLD, and a decentralized network of borrowers who act as guarantors of last resort. This design ensures resilience during market volatility and provides a robust defense against undercollateralized positions.