Liquity

Liquity V2 Redeployment Update and Audit Contest

We now have an updated timeline for the redeployment of Liquity V2!

Next Week: Publication of the updated and patched V2 codebase

March - April: Hosting of a multi-week audit competition

Q2: Redeployment of Liquity V2 on Mainnet

Since Liquity V2 will be deployed as an immutable protocol, it is of the utmost importance to ensure proper and safe functioning under all circumstances.

The issue found in V2 revealed how deeply hidden edge cases can be, and how sophisticated the approaches to uncover them must be.

We believe we can best address this by adding an extra level of scrutiny by doing an open audit competition on the deployment-ready codebase. Security must be the first priority of an immutable deployment, and thus we believe a minor postponement to be an acceptable tradeoff.

The competition will be held via an audit platform, with further details to be shared shortly.

Lastly, teams who are forking Liquity V2 will be free to proceed at their own cadence once the patched codebase has been made publicly available. These teams will have access to audit competition results, and any resulting patches needed to upgrade their mutable deployments.

Please note that these teams will only consider activity from the initial Liquity V2 deployment up until February 12th, when the initial notice of a potential SP issue was given, as eligible for reward programs.

Liquity V2 Redeployment Update

The Liquity V2 Stability Pool code changes are currently being audited and the updated system will be redeployed in mid-March.

In preparation for the relaunch, users should follow these steps:

- Stability Pool depositors should withdraw from the pools

- Borrowers should repay their loans

- Excess BOLD should be sold via secondary markets

Redemptions are increasing.

As TVL shrinks, volatility will increase.
Close your borrow positions in preparation for redeployment.

Liquity V2 Redeployment in Mid-March

A fix for Liquity V2 has been developed, and auditors will begin their review at the end of next week.

Once the audits are complete, Liquity V2’s redeployment is planned for mid-March.

What does this mean for current Liquity V2 users? 👇

- The current deployment of Liquity V2 will become a legacy protocol

- Liquity V2 Stability Pool depositors should close their positions immediately.

- Liquity V2 Borrowers should close their loans while liquidity conditions for $BOLD remain favorable.

- BOLD holders without a loan position should sell their BOLD.

Liquity V2 Redeployment Update

A fix for the issue in the Stability Pools raised regarding Liquity V2 is in development, and audits are scheduled to begin at the end of next week.

Liquity V2 will be redeployed, and users will be encouraged to reopen their positions on the new contracts.

What does this mean for current users?

- Liquity V2 Stability Pool depositors should close their positions. Immediate action is strongly advised, as there is an issue that could result in the loss of funds held in these contracts.

- Liquity V2 Borrowers should close their loans while liquidity conditions for BOLD remain favorable.

- BOLD holders without a loan position should sell their BOLD (more below).

If BOLD is above $1, BOLD holders should consider:

- Selling their BOLD using Curve, Uniswap, Balancer or a dex aggregator

- Providing single sided liquidity on Uniswap in ranges which they find attractive

- Setting limit orders on aggregators like Cow Swap

Yesterday’s issue with the Stability Pools (“Earn”) on Liquity V2 has been confirmed.

Users are strongly advised to close their Stability Pool (“Earn”) positions in Liquity V2. To the team’s knowledge, no users have been impacted and the issue is isolated to the Stability Pool (“Earn”).

All other parts of the system are unaffected (“Borrow”, “Multiply” and “Stake”) and BOLD remains fully backed and redeemable.

The Liquity V2 protocol will be redeployed with a patch.

We will update via our official channels (Discord, Twitter) next week.

Yesterday’s issue with the Stability Pools (“Earn”) on Liquity V2 has been confirmed.

Users are strongly advised to close their Stability Pool (“Earn”) positions in Liquity V2.

To the team’s knowledge this issue has not been exploited, no users have been impacted and the issue is isolated to the Stability Pool (“Earn”). All other parts of the system are unaffected (“Borrow”, “Multiply” and “Stake”) and BOLD remains fully backed and redeemable.

The Liquity V2 protocol will be redeployed with a patch.

We will update via our official channels (Discord, Twitter) next week.

The Liquity team was informed of a potential issue affecting Liquity V2 Stability Pools (“Earn”), and is currently investigating a potential impact.

The team is currently working on confirming this potential issue and solutions. The protocol continues to work as expected and to the team’s knowledge the potential issue has not impacted any users.

Out of an abundance of caution, a Liquity V2 user should close their Stability Pool (“Earn”) positions.

Based on the current understanding, the following parts of the system aren’t affected:

- BOLD remains fully backed and redeemable
- Borrowers can withdraw their collateral assets
- Staked LQTY positions are not impacted

We will keep you updated via only our official channels (Discord announcements and Twitter).

January Community Rewards 🚨

If you've contributed to raising awareness about Liquity, make sure to submit your claim here: https://forms.gle/XAv3uX31ugiLo8SJ7

get paid to borrow 🔷

Liquity V2 currently offers the lowest average borrowing rates for ETH, rETH, and wstETH

borrow on your own terms.

We are live to talk all things Liquity V2!

Bribing is LIVE!

Currently, 20K $BOLD per week is allocated to expand the V2 ecosystem.
If you're setting up a pool with BOLD or planning another integration, apply to receive them.

You can also submit bribes to LQTY voters.

More info:

PIL Funds put to Good Use

In the first two weeks of PIL, 45,000 BOLD have been allocated to various initiatives.
The majority has gone to the @CurveFinance pools, with a significant portion also allocated to @DeFiCollective_.

The ants have made good use of the funds on @VelodromeFi, boosting the $BOLD APRs to 60%!

If you want to receive BOLD incentives too, know that
bribing is now live and active.

Learn more about the process here:

25% of Liquity V2 revenues go to various protocol incentivized liquidity (PIL) initiatives each week.

This week saw a 142% increase from Week 1!

Onwards.

Starting tomorrow, BOLD / USDC and BOLD / LUSD pools on @CurveFinance will be eligible for CRV rewards

There are already ~770k veCRV votes allocated to the BOLD/USDC pool.

This is on top of the PIL rewards that the pools receive!

Vote here:
https://curve.fi/dao/#/ethereum/gauges

Bribe Mechanics in V2

PIL introduces a novel, sustainable incentive model to DeFi.

Read how LQTY stakers can help shape the economic growth of Liquity V2.

Onwards!

Last night saw 47 $ETH and 336 $wstETH worth of liquidations on Liquity V2.

Stability Pool depositors got to 'buy the dip' on both, along with earning the interest paid by borrowers in $BOLD!

The Stability Pools rewards APRs reflect this 👀

Last night saw 47 $ETH and 336 $wstETH worth of liquidations on Liquity V2.

Stability Pool depositors got to 'buy the dip' on both, along with earning the interest paid by borrowers in $BOLD!

The Stability Pools rewards APRs reflect this 👀

There is no second best risk free yield.

Real yield with Liquity's Stability Pools 💡

Last night saw 47 $ETH and 336 $wstETH worth of liquidations on Liquity V2.

SP depositors got to buy both collaterals at a discount!

Averaging:

ETH @ $2,338 ✅
wstETH @ $2,685 🔷

This is on top of the fixed 75% fees in $BOLD!