Liquity V2 launches with immutable core architecture and automatic safety rails across BOLD and collateral branches.
Tech & Launches ·
Liquity V2 went live on Ethereum mainnet on May 19, 2025, introducing an immutable core architecture that lets users borrow the BOLD stablecoin against ETH, wstETH, or rETH at borrower-set interest rates. The protocol combines branch-specific redemptions, Stability Pools, and automatic safety states designed to manage debt without discretionary operator control over the core contracts.
The new deployment represents a relaunch following a February 2025 disclosure of an issue in the earlier V2 Stability Pool. Liquity's response included user guidance to close positions, additional audits, and security reviews before the current May release. V1 and V2 operate as distinct systems in parallel: V1 remains available for users preferring pure ETH backing and the LUSD stablecoin, while V2 expands collateral options and introduces adjustable borrowing rates.
The immutable core constrains governance significantly—LQTY stakers retain only narrow voting rights over liquidity incentives, and predefined code can restrict or shut down individual collateral branches under specified conditions. Whether this balance between immutability and safety mechanisms will be tested across market conditions remains to be observed.