Algorithmic / under-collateralized stablecoin
Liquity V1 + V2 (LUSD / BOLD)'s assessment for RD-F-069 — scored green on the v1.7.0 rubric. The evidence below is the curator's reasoning for this score.
Evidence summary #
LUSD (v1): fully over-collateralized (min 110% ETH), hard $1 floor via ETH redemption at face value, Stability Pool + redistribution backstop, 0% interest, 0.5% one-time fee. Not algorithmic. LUSD maintained peg through May 2021 ETH crash, March 2022 drawdown, March 2023 USDC depeg crisis (LUSD briefly >$1.00 as flight-to-safety demand). At $1.00 peg as of 2026-05-16. BOLD (v2): same hard-collateral model, user-set interest rates (not algorithmic), redemption targets lowest-rate troves first, PCV mechanism. At $1.00 peg. Neither is algorithmic or under-collateralized. Best-in-class non-fiat stablecoin design.
Sources #
- URLLiquity v2 Risk DisclosureBOLD peg mechanics: hard-collateral, user-set interest rates, redemption to lowest-rate troves, PCVretrieved 2026-05-16
- Liquity v1 FAQ — GeneralLUSD peg mechanics: hard $1 floor via ETH redemption, Stability Pool backstop, 110% MCRretrieved 2026-05-16
- CoinGecko — BOLD priceBOLD at $1.00, circulating supply ~31.76M, stable at peg as of 2026-05-16retrieved 2026-05-16
- CoinGecko — LUSD priceLUSD at $1.00, 24h volume $143,523, market cap $28.6M — stable at peg as of 2026-05-16retrieved 2026-05-16
Methodology #
Classify whether the protocol is an algorithmic or under-collateralized stablecoin design per curator classification.
See the full factor methodology and distribution across all protocols →