BOLD BOLD Rank #640

BOLD is a fully redeemable stablecoin pegged to the US dollar and issued by the Liquity Protocol. It operates within the Liquity ecosystem, a decentralized borrowing platform where users can draw loans by depositing supported Ethereum-based collateral, including ETHm, wstETH, and rETH. A defining feature of the system is that borrowers set their own interest rates rather than having them determined by the protocol. BOLD serves as the loan payout asset, meaning it is minted and delivered to borrowers when they open a position. All loans must maintain a minimum collateral ratio of 110%. To protect the peg, the protocol relies on two mechanisms: a Stability Pool that holds BOLD to absorb liquidated debt, and a system of fellow borrowers who act as guarantors of last resort. Because the token is fully redeemable against the underlying collateral, it is designed to maintain parity with the dollar under normal market conditions. In addition to its Ethereum mainnet presence, BOLD is deployed within the Optimism and Base ecosystems, functioning as a crypto-backed stablecoin that supports decentralized finance activity across these Layer-2 networks.