Latest Liquity (LQTY) News Update

Deep Dive

1. V2 Transition Accelerates (29 November 2025)

Overview:
Liquity’s V2 upgrade introduces the BOLD stablecoin, multi-asset collateral (ETH/LSTs), and user-set interest rates. Unlike V1’s passive staking, V2 lets LQTY holders govern 25% of protocol revenue via PIL (Protocol Incentivized Liquidity) initiatives.

What this means:
This shifts LQTY from a passive yield token to a governance asset, potentially increasing demand if BOLD gains adoption. However, V2’s success hinges on overcoming competition from Aave/Maker and incentivizing forks on L2s.

(Thanh✦)

2. Staking Nears All-Time High (25 June 2025)

Overview:
Over 50.7M LQTY (53% of circulating supply) is now staked, driven by Stability Pool yields nearing 9% and bribes from PIL initiatives.

What this means:
High staking reduces sell pressure but concentrates governance power among long-term holders. The 34% surge in Stability Pool deposits since June suggests growing confidence in Liquity’s liquidation mechanisms.

(Liquity)

3. Market Volatility Persists (26 June 2025)

Overview:
LQTY rallied 26% to $1.13 in June following sBOLD’s launch (a gas-efficient yield token), though it has since retraced to $0.45 (-60%).

What this means:
The June surge reflected optimism around V2’s liquidity tools, but macro conditions (Fear & Greed Index: 30) and altcoin underperformance have pressured prices. Traders now watch the $0.40 support level.

(siren)

Conclusion

Liquity’s pivot to governance-driven revenue and multi-chain expansion positions it as a DeFi dark horse, but BOLD adoption remains unproven. With stakers consolidating power and V2’s real-world impact still unfolding, will protocol-controlled liquidity finally bridge the gap to Aave/Maker dominance?

Deep Dive

1. @LiquityProtocol: V2 revenue crosses $500K in 3 months 🚀 bullish

"Liquity V2 has surpassed $500k in revenue – and it's been less than 3 months"
– @LiquityProtocol (59.7K followers · 4.6K posts · 12 Aug 2025)
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What this means: This is bullish for LQTY because V2’s Protocol Incentivized Liquidity (PIL) system directs 25% of revenue to liquidity initiatives governed by stakers, creating a flywheel for protocol usage and token demand.

2. @BitradeX: LQTY/USDT listing goes live 💎 bullish

"📢 #LQTY Deposit/Withdrawal Open & LQTY/USDT Spot Trading Pair Launch"
– @BitradeX (16.5K followers · 617 posts · 30 Jul 2025)
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What this means: New exchange listings like Bitrade’s improve liquidity and retail accessibility, though LQTY’s 24h turnover of 0.309 suggests markets remain relatively thin.

3. @thanh_sky72: V2’s make-or-break moment 🤔 mixed

"Version 1 was elegant but weak commercially... V2 needs adoption to validate its model"
– @thanh✦ (385 followers · 3.6K posts · 2 Dec 2025)
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What this means: Neutral-to-bearish pressure could emerge if V2’s multi-chain BOLD stablecoin and interest rate flexibility fail to attract meaningful borrowing activity beyond the current $357M TVL.

Conclusion

The consensus on LQTY is mixed, balancing V2’s staker-centric revenue mechanics against lingering doubts about product-market fit. Watch the BOLD stablecoin’s cross-chain adoption post-Chainlink CCIP integration – its growth (or lack thereof) will likely dictate whether LQTY’s -47% 90d price decline reverses. Does V2’s governance layer finally align incentives for long-term holders?

Deep Dive

1. Frontend Redesign (20 August 2025)

Overview:
Liquity’s frontend received updates to improve accessibility to external BOLD yield opportunities, voting transparency, and loan redemption statistics. Users can now track redemption impacts (collateral removed, BOLD repaid) and view initiative-specific bribe values.

What this means:
This is bullish for LQTY because it simplifies DeFi participation, potentially attracting more users to stake and govern. Enhanced transparency could boost confidence in protocol incentives.
(Source)

2. Liquidation & Redemption Upgrades (3 December 2025)

Overview:
A GitHub release introduced:
- Reclaim collateral UX: Liquidated borrowers now see remaining collateral per branch (ETH/wstETH/rETH) and can reclaim it in one transaction.
- Direct BOLD redemptions: Users redeem BOLD for ETH/LSTs directly in-app, with slippage protection via a new RedemptionHelper contract.

What this means:
This is neutral for LQTY: while improving user safety, redemptions could pressure BOLD’s peg if adoption lags. However, streamlined processes may enhance protocol resilience.

3. V2 Multi-Chain Integration (Mid-2025)

Overview:
Liquity V2 expanded cross-chain via Chainlink’s CCIP, enabling BOLD on Arbitrum, Base, and Optimism. Over 15 forks on L2s like Berachain allocated ~4% of tokens to incentivize BOLD usage.

What this means:
This is bullish for LQTY because multi-chain adoption broadens BOLD’s utility, potentially increasing protocol revenue and staker-controlled PIL liquidity.
(Source)

Conclusion

Liquity’s late-2025 updates emphasize user-centric design, risk management, and ecosystem growth. While frontend improvements and V2’s cross-chain push aim to attract capital, redemption features balance usability with peg stability. Will BOLD’s multi-chain adoption offset redemption pressures as LQTY stakers steer liquidity incentives?

Deep Dive

1. Protocol Incentivized Liquidity (Ongoing)

Overview:
Liquity V2 allocates 25% of borrowing fees to liquidity initiatives, governed by LQTY stakers via weekly votes (Liquity Blog). Initiatives range from AMM pools (e.g., BOLD/USDC on Uniswap) to yield bribes for voters. Over 50.7M LQTY (53% circulating supply) is staked as of July 2025.

What this means:
Bullish for LQTY demand as stakers earn dual rewards (V1 fees + V2 incentives). However, concentrated voting power (e.g., Ekubo’s August 2025 bribery program) could skew incentives toward short-term gains.

2. Cross-Chain BOLD Expansion (Q1 2026)

Overview:
Liquity partnered with Chainlink CCIP to deploy BOLD on Arbitrum, Base, and Optimism, aiming to improve liquidity fragmentation (CoinMarketCap).

What this means:
Neutral-to-bullish – cross-chain accessibility may boost BOLD’s utility beyond Ethereum, but adoption depends on L2 traction and stablecoin competition (e.g., DAI, USDC).

3. Rate Manager Ecosystem Growth (2026)

Overview:
Third-party services like Summerstone and Bolder Cash let borrowers automate interest rate adjustments. These tools aim to balance liquidation safety and cost efficiency.

What this means:
Bullish for user retention – passive rate management could attract risk-averse borrowers. However, reliance on external managers introduces smart contract risks.

4. Friendly Fork Incentives (Mid-2026)

Overview:
Liquity’s Business Source License allows forks on L2s (e.g., Nerite on Arbitrum) to allocate 4% of their tokens to BOLD liquidity mining, creating a ~$60M incentive pool (Gate.io Analysis).

What this means:
High-risk, high-reward – forks could drive BOLD demand but may dilute LQTY’s value if forks adopt independent governance tokens.

Conclusion

Liquity’s roadmap balances immutable core protocol features with community-driven liquidity incentives, aiming to position BOLD as a decentralized stablecoin alternative. Success hinges on staker participation in PIL governance and cross-chain adoption velocity. Will BOLD’s real-yield model outcompete centralized stablecoins in a risk-off market?