YBOLD, issued by the Liquity Protocol smart contracts under the governance of LQTY tokenholders, is a tokenized representation of yield-bearing exposure to the BOLD stablecoin and its Stability Pool Earn mechanism on the Ethereum network [S1][S2].

Holders gain economic exposure to BOLD, an overcollateralized U.S. dollar (USD) stablecoin backed only by Wrapped Ether, Lido wrapped staked ETH and Rocket Pool staked ETH, that price-tracks 1 USD via redemption arbitrage [S1][S3]. Yield accrues from depositing BOLD into Stability Pools, which distribute 75% of each borrow market's interest revenue in BOLD plus liquidation gains, collateral acquired at roughly a 5% discount paid in staked ETH [S1].

The underlying tokens are issued by immutable Ethereum smart contracts, not by a single corporate entity; Liquity AG, of Dufourstrasse 43, 8008 Zurich, Switzerland, developed and published the protocol software but states it is not the operator of and does not control any version of the protocol and enters into no legal relationship with users [S4][S2]. BOLD confers no ownership right, share, security, or claim toward any legal entity, functioning as a crypto-collateralized bearer token [S2]. Access is permissionless with no disclosed eligibility gate; any address holding BOLD may redeem it for backing collateral at 1 USD face value [S1][S5].

The tokens are Ethereum tokens issued by smart contracts running on the Ethereum network [S2]. Minting opens a Trove, depositing WETH, wstETH or rETH collateral subject to a 2,000 BOLD minimum debt and a refundable 0.0375 ETH gas deposit per Trove [S6]. Redemption swaps BOLD for collateral against the lowest-interest-rate Troves, settling onchain and immediately [S5][S6].

<Sources
  retrievedAt="2026-06-21"
  items={[
    { id: "S1", url: "https://docs.liquity.org/v2-faq/bold-and-earn" },
    { id: "S2", url: "https://www.liquity.org/protocol-disclaimer" },
    { id: "S3", url: "https://docs.liquity.org/v2-faq/general" },
    { id: "S4", url: "https://www.liquity.org/" },
    { id: "S5", url: "https://docs.liquity.org/v2-faq/redemptions-and-delegation" },
    { id: "S6", url: "https://docs.liquity.org/v2-faq/borrowing-and-liquidations" },
  ]}
/>


Tokenized funds

Overcollateralized borrowers deposit funds into Liquity and receive LUSD stablecoin.

Liquity is a non-custodial stablecoin protocol built on Ethereum. Liquity was founded by Robert Lauko & Rick Pardoe and launched in 2020.

LQTY tokenholders own & govern the protocol. They currently take all of the total borrow & redemption fees paid by borrowers (revenue). Liquity’s investors include Lemniscap, Polychain, Alameda Research, etc.

Liquity yBOLDYBOLD

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