Latest Liquity (LQTY) News Update

Deep Dive

1. @LiquityProtocol: V2 Staking & Governance Overhaul bullish

"Liquity V2 enshrines 25% of revenues for liquidity initiatives controlled by LQTY stakers. Voting power scales with stake duration."
– @LiquityProtocol (59.7K followers · 4.6K engagements · 2025-06-22 20:34 UTC)
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What this means: This is bullish for LQTY because it ties protocol success directly to staker incentives, creating a flywheel for long-term holding. However, with only $500K in V2 revenue after 3 months (source), adoption remains critical.

2. @BitradeX: Major Exchange Listing neutral

"LQTY/USDT trading goes live July 30 – first listing on a top-20 exchange since 2024."
– @BitradeX (16.1K followers · 68 engagements · 2025-07-30 09:23 UTC)
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What this means: Neutral catalyst – while improving liquidity, LQTY’s price dropped -3% post-listing, reflecting weak immediate demand despite the $97M circulating supply.

3. @thanh_sky72: Competitive Concerns bearish

"V1’s simplicity couldn’t compete. V2 needs mass adoption to justify its Aave/Maker ambitions – right now it’s just a thesis."
– @thanh_sky72 (382 followers · 4.7K engagements · 2025-11-29 17:56 UTC)
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What this means: Bearish take highlighting Liquity’s struggle to differentiate in crowded DeFi lending markets, despite V2’s technical improvements like user-set interest rates.

Conclusion

The consensus on LQTY is mixed – bullish on protocol upgrades and staking mechanics, bearish on adoption risks and competitive pressures. Watch BOLD stablecoin’s cross-chain expansion via Chainlink CCIP (Gate.io analysis) as a key adoption metric. Will V2’s “protocol incentivized liquidity” model attract enough capital to reverse the token’s -40% 90-day slide?

Deep Dive

1. V2 Adoption & Staking Surge (2 December 2025)

Overview:
Liquity V2 has seen rapid growth since its relaunch, with Total Value Locked (TVL) up 67% to $177.1M and BOLD stablecoin issuance rising 25% to $46.6M. Over 50.7M LQTY (53% of circulating supply) is now staked, granting holders control over 25% of protocol revenue allocation.

What this means:
This is bullish for LQTY because staking reduces sell pressure and aligns incentives for long-term holders. However, sustainability hinges on broader V2 adoption, as revenue ($350K/month) remains modest relative to competitors like MakerDAO.

(Liquity)

2. XRP-Backed Stablecoin Forks (19 September 2025)

Overview:
Enosys launched a Liquity V2 fork on Flare Network, enabling XRP holders to mint overcollateralized stablecoins using wrapped XRP (FXRP). The protocol integrates Flare’s decentralized oracle (FTSO) for pricing and plans to support staked XRP (stXRP).

What this means:
This expands Liquity’s ecosystem reach into payment-focused chains, potentially attracting new users. However, the fork’s success depends on XRP’s DeFi adoption, which trails Ethereum-based assets.

(CryptoPotato)

3. Protocol Governance Shift (29 November 2025)

Overview:
V2 replaces V1’s passive staking with active governance, letting LQTY holders direct protocol revenue to liquidity initiatives. Analysts note this could help Liquity compete with Aave/Maker if adoption accelerates.

What this means:
The shift rewards active participants but introduces execution risk – poorly allocated incentives could dilute returns. With 94% of LQTY already circulating, inflation risks are minimal compared to newer DeFi tokens.

(EdgenTech)

Conclusion

Liquity’s V2 pivot toward governance and multi-chain expansion positions it for a potential DeFi resurgence, though token performance remains tethered to BOLD adoption. Will staker-directed incentives attract enough liquidity to justify its $45M market cap?

Deep Dive

1. Multi-Collateral Support & Interest Rate Flexibility (November 2025)

Overview: Liquity V2 now accepts wstETH and rETH as collateral, letting borrowers set personalized interest rates instead of fixed terms.

This upgrade positions Liquity closer to rivals like Aave by enabling dynamic rate strategies. Users can optimize borrowing costs based on market conditions, while redemptions prioritize loans with the lowest rates if BOLD (Liquity’s stablecoin) depegs.

What this means: This is bullish for LQTY because it broadens user appeal and could increase protocol revenue through higher borrowing activity. However, adoption depends on competitive rate positioning.
(Source)

2. Stability Pool Security Patch (February 2025)

Overview: A critical bug in V2’s Stability Pool (where users earn yields) was patched after audits, requiring users to migrate to new contracts.

The fix prevented potential fund losses, and the team conducted a 5-week audit contest with 800+ researchers to ensure robustness.

What this means: This is neutral for LQTY – while it resolved risks, the incident temporarily eroded user trust. Long-term, the rigorous auditing process strengthens security credibility.
(Source)

3. Protocol-Incentivized Liquidity (June 2025)

Overview: LQTY stakers now control 25% of weekly protocol revenue (PIL initiatives), voting to allocate funds to liquidity pools or bribes.

Voting power scales with stake size and duration, aligning long-term holders with protocol growth. Over 50.7M LQTY (53% of circulating supply) is staked as of July 2025.

What this means: This is bullish for LQTY because it creates sustainable demand for staking and ties token value to protocol revenue. However, reliance on bribes for voter incentives could introduce volatility.
(Source)

Conclusion

Liquity’s codebase shifts toward modularity (multi-chain forks), user empowerment (custom rates), and revenue-sharing governance. While technical risks like mainnet immutability remain, these updates position LQTY as a governance token with real yield potential. Will BOLD’s adoption across 15+ chains offset competition from Maker and Aave?

Deep Dive

1. Cross-Chain BOLD Expansion (2025–2026)

Overview: Liquity V2’s BOLD stablecoin is expanding to Ethereum L2s (Arbitrum, Base, Optimism) and non-EVM chains using Chainlink’s Cross-Chain Interoperability Protocol (CCIP). This aims to improve liquidity and adoption by enabling seamless BOLD transfers across networks.

What this means: Bullish for LQTY as cross-chain utility could increase BOLD demand, driving protocol revenue (25% of which funds PIL). Risks include reliance on Chainlink’s security and slower-than-expected adoption.

2. PIL Voting Enhancements (Ongoing)

Overview: Protocol Incentivized Liquidity (PIL) lets LQTY stakers direct 25% of BOLD’s interest revenue to liquidity pools. Recent upgrades include voter bribes (e.g., @SmarDex returned 76% ROI in BOLD emissions) and real-time voting analytics.

What this means: Neutral-to-bullish. While bribes may temporarily boost staking activity, sustainable growth depends on aligning incentives with long-term liquidity health.

3. Friendly Fork Ecosystem Growth (2026)

Overview: Over 15 forks of Liquity V2 are planned, including Bitcoin-backed protocols (BitVault) and XRP-collateralized loans (Enosys). These forks allocate ~4% of their tokens to bootstrap BOLD usage, creating a $60M+ incentive pool.

What this means: Bullish if forks drive BOLD demand, but bearish if fragmentation dilutes Liquity’s brand. Success hinges on maintaining technical cohesion across ecosystems.

Conclusion

Liquity’s roadmap balances protocol-level innovation (cross-chain BOLD, PIL) with ecosystem-driven growth (forks). The key metric to watch is BOLD’s circulating supply, which directly impacts LQTY’s revenue share. Will PIL’s community-driven liquidity model outpace centralized stablecoin rivals?