Liquity V2

Liquity V2 receives a B- risk grade (33/100) from Hindenrank, where lower scores indicate lower risk. Moderate risk — novel interest rate design creates herd behavior risks, compounded by a confirmed bug that required protocol redeployment A stablecoin protocol where you deposit ETH as collateral and mint BOLD stablecoins, choosing your own interest rate. It holds $91M in deposits. Its C grade reflects a confirmed bug that forced $30M in withdrawals and redeployment, plus the risk that borrowers clustering at similar rates get wiped out simultaneously during redemptions.

The key risks identified for Liquity V2 are: (1) If most borrowers pick the same interest rate, a single redemption event can close hundreds of positions at once. You lose your collateral with no warning. (2) A confirmed bug in the Stability Pool forced $30M+ in outflows and required a full redeployment. The patched version is still relatively fresh. (3) Changing your interest rate costs an upfront fee. This means you can get stuck at a bad rate during fast market moves because adjusting is expensive.

Liquity V2 scores 33/100 across eight risk dimensions: Mechanism Novelty: 3/15, Interaction Severity: 10/20, Oracle Surface: 2/10, Documentation Gaps: 1/10, Track Record: 7/15, Scale Exposure: 3/10, Regulatory Risk: 1/10, Vitality Risk: 6/10. The highest risk area is Vitality Risk at 6/10.

Among 28 rated Stablecoin protocols on Hindenrank, Liquity V2 ranks #4 by safety (lowest risk score = safest). Its 33/100 risk score and B- grade place it among the safer Stablecoin protocols.

Liquity V2 scores 7/15 on the Track Record risk dimension, indicating some history of security incidents or exploits. Higher scores reflect more severe or frequent incidents. Review the full risk report for details.