Liquity
Liquity AG is a Swiss software studio that built a decentralized Ethereum borrowing protocol enabling users to mint the BOLD and LUSD stablecoins against ETH and liquid staking token collateral, serving a global base of DeFi users through immutable smart contracts and community-operated frontends.
- Company typePrivate
- Founded2020
- HeadquartersBaar, Switzerland
- Headcount11–50
- GTM typeB2C
- OfferingSoftware
What Liquity does
Liquity AG is a Swiss software development studio headquartered in Zurich that built and originally deployed the Liquity Protocol, a decentralized borrowing protocol on Ethereum mainnet. The company developed two protocol generations: Liquity V1, launched in April 2021, enables interest-free borrowing of the LUSD stablecoin against ETH collateral with a one-time origination fee; Liquity V2, launched in November 2024 and subsequently relaunched in 2025, issues the BOLD stablecoin and introduces user-set interest rates, multi-collateral support (ETH, wstETH, rETH), and a Protocol Incentivized Liquidity (PIL) mechanism. The protocol is governed by immutable smart contracts with no admin keys, and users access it exclusively through independent community-operated frontends such as Liquity.App, DeFi Saver, LQTY.IO, and Trove Zero.
The core technology stack consists of audited Solidity smart contracts, integrated liquidity on Uniswap and Curve, and third-party yield-bearing wrappers (sBOLD from K3 Capital, ysyBOLD from Yearn Finance). Revenue mechanics flow entirely through the protocol to users: 75% of V2 borrowing interest accrues to Stability Pool depositors earning 6-10% APY, while 25% is directed by LQTY stakers to PIL initiatives on external DEXs. Liquity AG itself does not capture protocol fees by design; the company operates as an independent studio funded by an $8.4M cumulative raise from Polychain Capital, Pantera Capital, 1kx, Lemniscap, Robot Ventures, and others.
Liquity serves a global, horizontal customer base of DeFi users and ETH holders seeking non-custodial liquidity and leveraged ETH exposure, with a horizontal go-to-market driven by community channels (Discord, blog, multilingual documentation, social media) and an ecosystem of 15+ friendly forks that reward BOLD users with airdrops. V1 reached over $5 billion in peak TVL with zero exploits and no significant depeg events across 4+ years; BOLD has been rated A- by independent agency Bluechip. The company is privately held, employs 11-50 people, and is led by CEO Michael Svoboda.
Liquity firmographics
Firmographics- Name
- Liquity
- Legal name
- Liquity AG
- Website
- https://liquity.org
- Company type
- Private
- Founded year
- 2020
- Operating status
- Operating
- Headcount range
- 11–50 employees
- Short description
- Liquity AG is a Swiss software studio that built a decentralized Ethereum borrowing protocol enabling users to mint the BOLD and LUSD stablecoins against ETH and liquid staking token collateral, serving a global base of DeFi users through immutable smart contracts and community-operated frontends.
- Ownership category
- akta.pro rank
Liquity industry classification
Industry- Product category
- Decentralized Finance (DeFi) Lending Protocol
- NAICS
- Financial Transactions Processing, Reserve, and Clearinghouse Activities (522320), Funds, Trusts, and Other Financial Vehicles (525)
- SIC
- Security & Commodity Brokers, Dealers, Exchanges & Services (6200), Finance Services (6199), Security Brokers, Dealers & Flotation Companies (6211)
- akta.pro primary industry
- Decentralized Lending Protocols (DeFi Money Markets) (FSADAFAB)
- akta.pro secondary industries
- Stablecoin Protocols (Decentralized) (FSADAMAD), Liquidity Management & Market-Making Protocols (FSADAMAH)
Keywords
Where Liquity is headquartered
LocationHeadquarters
- HQ city
- Baar
- HQ country
- Switzerland
- HQ region
- Europe
Offices1 record
Markets served
Liquity business model
Business model- GTM type
- B2C
- Offering type
- Software
- Cost components
- Technology or R&D, Personnel, Operations, Marketing or Sales, Infrastructure, Others
Revenue model
- Borrowing Interest (V2): In V2, borrowers pay interest set by themselves. These interest payments generate continuous revenue for BOLD depositors in Stability Pools (75%) and Protocol Incentivized Liquidity (25%).
- LQTY Staking Rewards: LQTY stakers direct 25% of protocol revenue to liquidity initiatives and can receive protocol fees and bribes. Staked LQTY also earns V1 fees.
- One-Time Borrowing Fees (V1): V1 charges a one-time origination fee (0.5% minimum) when opening a Trove, adjusted by the baseRate mechanism.
Pricing tiers
| Model | Billing | Price |
|---|---|---|
| Transaction based/ take rate | Pay-as-you-go | Interest-free borrowing with one-time fee (V1) |
| Other | Pay-as-you-go | User-set variable interest (V2) |
Go-to-market motion1 record
Distribution channels5 records
Marketing channels7 records
Liquity product offering
Product offeringCore offering
Liquity is a decentralized, immutable borrowing protocol on Ethereum that lets users mint USD-pegged stablecoins (LUSD in V1, BOLD in V2) against ETH and liquid staking token (wstETH, rETH) collateral at up to 91% LTV. The protocol offers interest-free borrowing with a one-time fee (V1) or user-set interest rates (V2), together with Stability Pool yield, leveraged ETH exposure via Multiply, and LQTY governance staking. Once deployed, the smart contracts run autonomously with no admin keys.
Product overview
Liquity is a decentralized DeFi borrowing protocol consisting of two versions. Liquity V1 offers interest-free borrowing against ETH collateral, minting the LUSD stablecoin. Liquity V2 is a new generation borrowing protocol enabling users to mint BOLD stablecoin against ETH or liquid staking tokens (wstETH, rETH) with user-set interest rates. The product suite includes Borrow (collateralized lending up to 91% LTV), Multiply (leveraged ETH exposure up to 11x), Earn (Stability Pool yield 6-10% APY, LPing on Uniswap/Curve, and yield-bearing tokens sBOLD/yBOLD), and Stake (LQTY governance staking directing 25% of protocol revenue). BOLD is a crypto-native stablecoin rated A- by Bluechip, backed 100% by ETH/LSTs with immutable design and direct redeemability. The ecosystem includes 15+ friendly forks rewarding BOLD users with airdrops.
Differentiator
Problem solved
Functional benefit
Brands
- Liquity V1: Original borrowing protocol enabling interest-free loans against ETH collateral, minting the LUSD stablecoin with built-in redemption mechanism
- Liquity V2
- BOLD
- LUSD
Products and services
- BOLD Stablecoin USD-pegged stablecoin issued by Liquity V2, over-collateralized by WETH, wstETH, and rETH. Designed for users who want a decentralized, censorship-resistant, fully reserved stable asset redeemable 1:1 for underlying collateral.
- LUSD Stablecoin USD-pegged stablecoin from Liquity V1, backed purely by ETH collateral with interest-free borrowing and a one-time origination fee. Continues to operate alongside V2.
- Borrow (V2) Core borrowing product letting users mint BOLD against ETH or LST collateral at up to 91% LTV, with borrower-set interest rates that can be adjusted at any time or delegated to third parties.
- Multiply (V2) Leveraged ETH exposure product allowing users to increase their exposure to ETH and its staking yield up to 11x via 1-click automated looping, achieving up to 91% LTV on ETH and 83.33% on LSTs.
- Earn (V2) Yield product suite covering BOLD earning opportunities including Stability Pool deposits (6-10% APY), LPing on Uniswap/Curve, and yield-bearing tokens sBOLD and ysyBOLD.
- Stake LQTY (V2) Governance staking product enabling LQTY holders to direct 25% of protocol revenue to BOLD liquidity initiatives (PIL), earn V1 fees, and receive third-party bribes. Voting power accrues without lock-up.
- LQTY Governance Token
Quantifiable outcome
- Up to 91% LTV on ETH, 83.33% on LSTs
- +4 more outcomes
Companies that use Liquity
Customer profileSegments1 record
Ideal customer profiles1 record
Liquity technology and API
TechnologyTechnology focussed Yes
API detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
Integration7 records
Feature8 records
Liquity partnerships and signals
Strategic signalPartnerships
25 partnerships are on record, tiered core and minor.
- ChainSecuritycoreSecurity audit firm that audited Liquity smart contracts for vulnerabilities.
- DedaubcoreSecurity audit firm that audited Liquity smart contracts.
- Chaos LabscoreSecurity audit firm in Liquity's audit network.
- Hats FinancecoreSecurity audit firm in Liquity's audit network.
- Centora (Certora)coreSecurity audit firm in Liquity's audit network.
- CoinspectcoreSecurity audit firm in Liquity's audit network.
- ReconcoreSecurity audit firm in Liquity's audit network.
- Liquity.AppcoreCommunity-operated frontend for Liquity V1 and V2. Primary interface for many users.
- DeFi SavercoreAll-in-one dashboard frontend with advanced automation options for managing DeFi positions.
- LQTY.IOminorCommunity frontend hosted on German server.
- Trove ZerominorCommunity frontend for Liquity V2.
- QuillFiminorFork of Liquity V2 deployed on another network. Licensed the V2 codebase.
- AsymmetryFiminorFork of Liquity V2. Licensed the V2 codebase.
- NeriteminorFork of Liquity V2. Licensed the V2 codebase.
- BeraBorrowminorFork of Liquity V2 on Berachain. Licensed the V2 codebase.
- FelixminorFork of Liquity V2. Licensed the V2 codebase.
- EbisuminorFork of Liquity V2. Licensed the V2 codebase.
- DeFi DollarminorFork of Liquity V2. Licensed the V2 codebase.
- AesyxminorFork of Liquity V2. Licensed the V2 codebase.
- Orki FinanceminorFork of Liquity V2. Licensed the V2 codebase.
- SonetaminorFork of Liquity V2. Licensed the V2 codebase.
- MustangminorFork of Liquity V2. Licensed the V2 codebase.
- ĒnosyscoreFork of Liquity V2 on Flare Network. Actively rewarding Liquity V2 users with APS token airdrops. 15+ fork airdrops expected in 2026.
- UniswapcoreBOLD/ETH liquidity pools on Uniswap as part of Protocol Incentivized Liquidity (PIL).
- Curve FinancecoreBOLD stablecoin pools on Curve as part of Protocol Incentivized Liquidity (PIL).
Scale indicators8 records
Recent moves3 records
Expansion highlights6 records
Liquity competitors and assessment
Company assessmentDirect peers
- Spark Protocol: Spark is Sky/MakerDAO's lending arm, enabling DAI borrowing against ETH and LST collateral with deep Sky/Maker liquidity. Directly competes with Liquity V2 on LST-collateralized lending and stablecoin borrowing.
- Aave: Aave is the largest DeFi lending protocol, enabling users to deposit collateral and borrow against a wide range of assets with algorithmically determined variable rates. Competes directly with Liquity on ETH-collateralized borrowing and stablecoin liquidity.
- Frax Finance: Frax is a decentralized stablecoin protocol (FRAX, frxUSD) historically using fractional algorithmic backing and now transitioning to fully crypto-backed. Comparable to Liquity as a DeFi-native stablecoin issuer with lending products (Fraxlend).
- Compound Finance: Compound is a foundational DeFi lending protocol with pool-based variable/fixed interest rates. Competes with Liquity for ETH-collateralized borrowing and is one of the most established decentralized money markets.
- MakerDAO / Sky: MakerDAO (rebranded to Sky) operates the DAI stablecoin and is the largest decentralized CDP protocol. Directly comparable to Liquity in offering ETH-collateralized stablecoin minting, though MakerDAO uses governance-controlled parameters rather than immutable contracts and user-set rates.
Emerging players
- Prisma Finance: Prisma is a Liquity fork issuing prismaUSD, a stablecoin backed by LSTs (wstETH, rETH, etc.) using similar CDP mechanics. Direct code descendant of Liquity V2 and one of the friendly forks in Liquity's ecosystem.
- Alchemix: Alchemix offers self-repaying loans via yield-bearing collateral and alUSD/alETH synthetic assets. Adjacent to Liquity in DeFi lending innovation but focused on automated debt repayment rather than explicit stablecoin minting.
- Reflexer (RAI): Reflexer issues RAI, an ETH-backed non-pegged stablecoin with redemption-based price discovery. Shares Liquity's philosophy of algorithmic stability via redemption but uses a floating target rather than hard $1 peg.
Others
- Curve Finance: Curve is the dominant stablecoin DEX where BOLD liquidity is bootstrapped via Liquity's Protocol Incentivized Liquidity (PIL). Not a direct lending competitor but a critical infrastructure dependency for BOLD's peg stability.
- Uniswap: Uniswap is the largest Ethereum DEX and a key liquidity venue for BOLD/ETH pairs via PIL incentives. Indirect competitor for liquidity provision and a key integration partner for Liquity V2.
Market position
Strengths5 records
Weaknesses5 records
Competitive moat5 records
Key risks7 records
Key highlights7 records
Customer concentration
Liquity social profiles
Digital presenceLiquity compliance and trust
Trust signalCompliance1 record
Liquity financial estimates
Financial estimateRevenue estimate
Valuation estimate
Liquity leadership team
Management profileNumber of profiles
Profiles3 records
Liquity funding detail
Funding detailFunding overview
Funding rounds3 records
Investors13 records
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
Liquity M&A and investment
M&A and investmentM&A
Investments1 record
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about Liquity
What does Liquity do?
Liquity is a decentralized, immutable borrowing protocol on Ethereum that lets users mint USD-pegged stablecoins (LUSD in V1, BOLD in V2) against ETH and liquid staking token (wstETH, rETH) collateral at up to 91% LTV. The protocol offers interest-free borrowing with a one-time fee (V1) or user-set interest rates (V2), together with Stability Pool yield, leveraged ETH exposure via Multiply, and LQTY governance staking. Once deployed, the smart contracts run autonomously with no admin keys.
Is Liquity a public or private company?
Liquity is a private company. It is classified as venture growth investor backed and is currently operating.
When was Liquity founded?
Liquity was founded in 2020. It employs 11 to 50 people.
Where is Liquity based?
Liquity is headquartered in Baar, Switzerland, in the Europe region.
How does Liquity make money?
Three revenue lines are on record. Borrowing Interest (V2) is the primary driver. The others are LQTY Staking Rewards and one-Time Borrowing Fees (V1).
Who are Liquity's main competitors?
Direct peers on record are Spark Protocol, Aave, Frax Finance, Compound Finance and MakerDAO / Sky. Emerging players are Prisma Finance, Alchemix and Reflexer (RAI). Others are Curve Finance and Uniswap.
Does Liquity have an API?
No public API is recorded for Liquity.
What industry is Liquity in?
Liquity's product category is Decentralized Finance (DeFi) Lending Protocol. Its primary akta.pro industry code is FSADAFAB, Decentralized Lending Protocols (DeFi Money Markets), with a secondary code of FSADAMAD, Stablecoin Protocols (Decentralized). Its NAICS code is 522320 and its SIC code is 6200.