help: News of Liquity (LQTY) - August 2024 Price Update - 7.42% Breakout Crypto News and Analysis

To God be the Glory

Spot the Main Event:

They are deploying Liquity v2 and $BOLD on mainnet. v2 also introduces adaptive redemptions, where collateral deemed most risky to $BOLD’s backing is redeemed first. This helps improve the health of collateral branches with higher "outside" debt (debt not covered by their SP)

Cute, funny and a little bit crazy!!!

Spot the Main Event:

Redemptions: Why Are They Important? Redemptions are crucial to maintaining peg stability for $BOLD. With Liquity v2, this mechanism ensures that $BOLD remains closely pegged to $1. Redemptions allow $BOLD holders to exchange it for $1 worth of ETH (LSTs) collateral. When $BOLD < $1, arbitrageurs can redeem it for $1 of ETH, which in turn reduces $BOLD supply & helps peg. In v2, redemptions are based on user-set interest rates. For the first time, borrowers can choose their own rates. Redemptions are based on interest-rate paid, with the lowest payers being first in line to getting redeemed. Simply adjust your interest rate to avoid getting redeemed. v2 also introduces adaptive redemptions, where collateral deemed most risky to $BOLD’s backing is redeemed first. This helps improve the health of collateral branches with higher "outside" debt (debt not covered by their SP). As users increase their interest rates, they drive up the yield for holding $BOLD, making it more attractive. This is because v2 directs the majority of its protocol revenue toward growing $BOLD. In v2, redemptions don’t just maintain $BOLD’s peg—they’re a safeguard that adapts to market conditions. By aligning redemptions with user-set interest rates, Liquity v2 offers a sustainable, decentralized way to restore stablecoin value. Actual, DeFi.

Spot the Main Event:

They are deploying Liquity v2 and $BOLD on mainnet. v2 also introduces adaptive redemptions, where collateral deemed most risky to $BOLD’s backing is redeemed first. This helps improve the health of collateral branches with higher "outside" debt (debt not covered by their SP).

Trade hard. Joy is coming

Spot the Main Event:

They are deploying Liquity v2 and $BOLD on mainnet. v2 also introduces adaptive redemptions, where collateral deemed most risky to $BOLD’s backing is redeemed first. This helps improve the health of collateral branches with higher "outside" debt (debt not covered by their SP), With v2, their focusing on the original idea behind DeFi stablecoins: autonomous borrowing facilities.

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