Can Liquity V2 Solve The Stablecoin Trilemma?

Sep 24, 2023

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Robert Lauko is the Founder and Head of Research at Liquity. Michael Svoboda is CEO at Liquity.

In this episode, we dive into what we anticipate to be one of the most radical decentralized stablecoin upgrades–Liquity V2. Two years after launching what most of us regard as the most decentralized stablecoin in DeFi, LUSD, and having issued over $4.5b worth of interest free loans, it was recently announced at EthCC that Liquity is developing “an alternative product that aims to crack the stablecoin trilemma.” Although Liquity V2 is not scheduled to release until Q2-2024, Robert and Michael gave us a rare first look at some of the mechanics and features behind the upcoming Liquity V2 protocol.

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Timestamps

00:00 - Intro
4:04 - Liquity V2 announcement at EthCC
5:08 - Robert and Michael's background
8:10 - Overview of Liquity and LUSD
11:30 - Reflecting stablecoin struggles in DeFi
13:45 - Three Value Props of Liquity V1
14:55 - Reactions to Liquity forks
18:29 - What is immutability and why does it matter?
21:29 - What is the Stablecoin Trilemma?
24:08 - Why shift away from V1 when it already works?
27:45 - New V2 features, principal protection and secondary market
38:13 - ETH LSTs as collateral
42:04 - Predictions for how Liquity V2 behaves in a bull market
45:40 - Predictions for how Liquity V2 behaves in a bear market
52:31 - Are there worries about V2 copycats?
55:46 - Rapid fire / TLDR questions on V2
1:00:57 - Closing

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🔗 Guest Links 🔗

► Liquity website: https://liquity.org/
► Liquity on Twitter: https://twitter.com/LiquityProtocol
► Liquity Docs: https://docs.liquity.org/
► Introducing Liquity V2 announcement: https://www.liquity.org/blog/introducing-liquity-v2

► Robert on Twitter: https://twitter.com/robert_lauko
► Michael Svoboda on Twitter: https://twitter.com/svobodamichael

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