Liquity | Bluechip

BOLD by Liquity Protocol is backed entirely by ETH and liquid staked ETH. The protocol cannot add more collateral assets. ETH is a highly liquid asset where large positions can be liquidated with limited market impact.
BOLD does inherit technical and centralization risk from Lido and Rocket Pool, the protocols that issue the liquid derivatives of staked ETH. Any exploit or loss of funds in these protocols can directly impact the peg.
BOLD incorporates collateral liquidations and direct redemptions to enforce the $1 peg. Any holder can redeem against collateral from the loan with the lowest interest rate. This enables an automatic riskless arbitrage, incentivizing buyers when BOLD is below peg.
BOLD is developed by Liquity AG, who have prior experience with building LUSD. However, the protocol is not governed by a legal structure in any jurisdiction. It is a set of immutable smart contracts that function on Ethereum.
While LQTY stakers control a portion of interest payments from loans, this does not impact the stability of BOLD. Decision making is intentionally constrained with governance authority being narrowly scoped and primarily focused on secondary market liquidity initiatives.
Suitability - BOLD is most suitable for (a) users who trust code over humans as custodians of assets, (b) users who prioritize censorship resistance over regulatory protections, and (c) users seeking exposure to the US Dollar in an onchain format.

The following outcomes may improve factor scores.

BOLD trades in a narrower range around the $1 peg during the period under evaluation.
Onchain liquidity pools for BOLD attract higher liquidity in non-BOLD paired asset.

BOLD is backed exclusively by ETH. Collateral is held in immutable and audited smart contracts owned by the Liquity Protocol.

Market makers maintain the peg through direct redemptions for an equivalent value of collateral. Any user can mint or redeem using the underlying contracts.

BOLD is issued by Liquity Protocol, developed in 2025 by Liquity AG. The company is managed by Michael Svoboda as CEO.

The developer does not retain any control over the protocol. All functions are executed by fully autonomous smart contracts on Ethereum.

This factor evaluates technical implementation using indicators like smart contract quality, oracle risk, exploit history, and more.

Currently, we do not assign a standalone score to this factor. An independent assessment of technical risk will be included in future iterations.

BOLD is issued by a fully decentralized and permissionless protocol. It is not subject to any regulatory oversight and does not rely on custodians for asset storage.

As a non-custodial and immutable system, the protocol does not face any governance or censorship risk associated with a centralized issuer.

BOLD is issued by a protocol with no voting system or onchain governance mechanisms. This removes risks tied to attacks from malicious actors.

The protocol also issues LQTY as a secondary token. However, governance power of LQTY is narrowly scoped and does not impact the stability of BOLD.

This factor evaluates external feedback using indicators like prediction markets, social sentiment, perpetual futures, and more.

Currently, we do not assign a standalone score to this factor. An independent assessment of external feedback will be included in future iterations.