Stablecoins are on the up. If we look at stablepulse, at the time of writing, we’re at over 200B in circulating supply. Volumes are also up, both metrics at all time highs.
And while the big actors dominate, their models are by no means decentralized. There’s either an element of cash in a bank, or a link to other TradFi instruments. Or if not that, some other element of centralized control, at best through a DAO.
It’s hence not every day that a distinguished stablecoin is launched, but earlier this week we saw just that. With the launch of Liquity V2, we’ve not just got a decentralized stablecoin that relies on decentralized collateral, but also immutable contracts, and a very powerful and market driven interest rate model. One that also contributes back to the holders of BOLD through the stability pool.
The lack of yield on so many of the dominating stablecoins is a rip off, and one that BOLD solves for in a manner that is both novel and fair.
If you mint BOLD, you’ll need to set an interest rate. But what rate should you set? That question will become ever more important to understand, in order to obtain efficient loan positions with the right level of risk.
To efficiently borrow against your collateral, you’ll need insights. Bolder Cash is a site that provides that insight, showing you both historical rates and debt distributions.