Liquity
AuditedBlue ChipImmutableLiquity is one of the original immutable, governance-free CDP protocols, issuing the LUSD stablecoin (V1) and the BOLD stablecoin (V2) against ETH and LSTs with no admin keys and no upgradeability.
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The Problem
Centralised stablecoins carry custodial and regulatory risk, while most decentralised stablecoins rely on mutable contracts, active governance, or admin pause keys that compromise censorship resistance.
The Solution
Liquity issues USD-pegged stablecoins (LUSD on V1, BOLD on V2) from a CDP protocol whose contracts are immutable, have no governance over core logic, and have no admin pause or blacklist powers — only protocol-defined liquidation and redemption mechanisms enforce the peg.
Why it Matters
The reference implementation of trustless, immutable CDP design: 5+ years of LUSD peg history with zero core-contract exploits, zero admin interventions, and a Stability Pool that turns peg defence into yield. V2 brings multi-collateral and user-set rates while preserving the immutable architecture.
Protocol Metrics
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View allFrequently asked questions about Liquity
What is Liquity?+
Liquity is a CDP protocol operating on Ethereum. Liquity is one of the original immutable, governance-free CDP protocols, issuing the LUSD stablecoin (V1) and the BOLD stablecoin (V2) against ETH and LSTs with no admin keys and no upgradeability.
How does Liquity work?+
Liquity issues USD-pegged stablecoins (LUSD on V1, BOLD on V2) from a CDP protocol whose contracts are immutable, have no governance over core logic, and have no admin pause or blacklist powers — only protocol-defined liquidation and redemption mechanisms enforce the peg.
Is Liquity safe?+
DeFi Sentinel rates Liquity AAA with a safety score of 95/100, indicating highest safety tier. The score reflects five risk dimensions: smart contract & technical risk, economic design & market risk, governance & centralization, sustainability & competitive position, and reputation & social trust. Liquity has 9 audits on record. DeFi Sentinel's analysis flagged 1 medium, 2 low risk alerts across Smart Contract & Technical Risk, Governance & Centralization and Economic Design & Market Risk. As with all DeFi protocols, residual risk remains and users should review the full risk breakdown before depositing.
What is the safety score of Liquity?+
Liquity has a DeFi Sentinel safety score of 95/100 (rating AAA), last updated May 21, 2026. The score is computed across smart contract & technical risk (30%), economic design & market risk (25%), governance & centralization (20%), sustainability & competitive position (15%), and reputation & social trust (10%).
Which chains does Liquity support?+
Liquity is deployed on Ethereum.
Has Liquity been audited?+
Yes. Liquity has 9 audit reports on record from firms including Trail of Bits, Coinspect, ChainSecurity. Audit reports and dates are linked under the Resources tab on this page.