*Inflation figures shown here reflect circulating (market) inflation and may differ from a coin’s projected, policy (planned) inflation.
What is Liquity-bold-2?
Liquity-bold-2 is a decentralized lending protocol on Ethereum that lets users borrow a USD-pegged stablecoin (LUSD) using ETH as collateral. The system is governed by the LQTY token, enabling community-driven upgrades and governance with transparent, rules-based operations. Built for secure, censorship-resistant liquidity, Liquity-bold-2 simplifies access to crypto-backed loans without traditional intermediaries.
Why does Liquity-bold-2 have inflation?
Liquity-bold-2 has inflation because the LQTY governance token is issued on an ongoing schedule to reward participation and decentralization. New LQTY emissions align incentives for governance, stability pool participation, and protocol security, helping bootstrap growth while gradually diluting existing holders.
How is Liquity-bold-2 inflation calculated?
Liquity-bold-2 inflation is calculated by comparing the circulating supply from one year ago to today’s supply. The percentage increase in supply over that period is the annual inflation rate. Learn more in our guide: What is cryptocurrency inflation?.
How is Liquity-bold-2 emission calculated?
Liquity-bold-2 emission refers to how new coins enter circulation, usually through mining or staking rewards. The emission rate depends on the project’s monetary policy and block reward schedule. Learn more in our guide: What is cryptocurrency emission?.
