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Token TransparencyLiquity
LQTY ·B1 v1.4 ·6 gapsPartial - 6 gaps
Token

Project & Team

01

Description of Project

Provide a concise narrative that clearly states each of (a)–(e) below.

  • (a) Problem the project solves — The problem the project is solving.
  • (b) Operational priorities — Provide a high-level description of how the project expects to support ongoing development and operations over time.
  • (c) High-level project overview — How the project works at a high level.
  • (d) Primary token functions — The primary functions of the token (e.g. gov participation).
  • (e) Control surface reliance — If any, briefly describe the anticipated or possible evolution of the protocol's governance/control model.

(a) Problem the project solves

Liquity V2 solves the need for decentralized, on-chain liquidity against ETH and staked ETH collateral. It is a decentralized borrowing and stablecoin protocol that enables users to unlock liquidity against ETH, wstETH, and rETH, borrow at a rate they choose, and use BOLD, a USD stablecoin redeemable for $1-worth of protocol collateral.

(b) Operational priorities

Liquity V2 supports ongoing operations through an immutable protocol that exists completely on-chain and cannot be changed or upgraded; collateral price oracles remain the sole external dependency. Liquity does not run its own frontend, so users access the protocol by choosing independent, community-hosted frontends. Ongoing development and user support are supported through Docs and GitHub as build resources, and Support, FAQ, and Whitepaper as help resources.

(c) High-level project overview

Liquity V2 is a decentralized borrowing and stablecoin protocol. Users can borrow against ETH and staked ETH from Lido (wstETH) and Rocket Pool (rETH), minting BOLD against their collateral at an interest rate they choose, with borrowing available up to 91% loan-to-value. Users control their borrowing costs and can fix and adjust their interest rate at any time. BOLD is the protocol’s Ethereum-native stablecoin and is redeemable for $1-worth of protocol collateral. Liquity V2 exists completely on-chain, with collateral price oracles as the sole external dependency, and cannot be changed or upgraded. Liquity does not run its own frontend; users choose from independent, community-hosted frontends to use the protocol.

(d) Primary token functions

BOLD’s primary function is to serve as a decentralized stablecoin. Users can mint BOLD against their collateral at an interest rate they choose, and BOLD is redeemable for $1-worth of protocol collateral. BOLD can also be staked, with protocol revenues returned to BOLD stakers, and users can hold sBOLD and ysyBOLD and use them in DeFi while earning yield. BOLD has no governance or admin function.

(e) Control surface reliance

Liquity V2 exists completely on-chain and cannot be changed or upgraded. Collateral price oracles remain the sole external dependency. BOLD is immutable and has no governance or admins.

02

Known Project Team

For each existing entity: Labs/DevCo (e.g., Founder, CEO, CTO, COO), Foundation (e.g., President, Executive Director, CFO, COO), and DAO / onchain governance leadership (if applicable) list the:

  • (a) full names,
  • (b) official titles,
  • (c) and prior experience of key team members.

For any non-existent entity, explicitly mention it does not exist. External links may be included but they will not factor into the score.

Labs / DevCo

Full Name

Official Title

Prior Experience

Samrat Lekhak

CEO

Head of growth

Foundation

Full Name

Official Title

Prior Experience

No Foundation exists.

DAO / Onchain Governance

Full Name

Official Title

Prior Experience

No DAO or onchain governance leadership exists.

03

DAO Structure

Provide a structured description of the DAO's governance, powers, and economic rights. If a DAO does not exist, state so for each sub question. Even if there is no DAO, there must be an answer to (d). Address the lettered items below.

  • (a) IP ownership & control — State what IP the DAO owns or controls (e.g., codebases/repos, trademarks/brands). Note any license if relevant.
  • (b) Contract/admin powers — List on-chain or administrative authorities and limits: pause/upgrade roles (e.g., multisig pause), governance-executor authorities, and the method of authority for each (e.g., veto, majority, super-majority).
  • (c) Locked-token rights (conditional) — If locking/staking for additional rights exists, explain the additional rights and what tokenholders can and cannot decide. If no locking mechanism exists, leave absent.
  • (d) Current tokenholder governance rights and economic arrangements — If any, describe the current governance rights of tokenholders and any presently operative rights or arrangements relating to treasury actions, fee-routing, rewards, buybacks, or other protocol-controlled resources. If none, state that explicitly.
  • (e) Control surface reliance — If any, briefly describe the anticipated or possible evolution of the protocol's governance/control model.
  • (f) Dissolution authority — State who can dissolve/wind up the DAO and by what mechanism (e.g., on-chain vote threshold, board resolution of a legal wrapper).

(a) IP ownership & control

There is no DAO.

(b) Contract/admin powers

Liquity V2 is immutable, nothing can be changed by anyone. No pause, upgrade, governance-executor, multisig, admin or veto authority exists over Liquity V2. The contracts are immutable and no party holds any administrative role.

(c) Locked-token rights (conditional)

LQTY stakers directs 25% of protocol revenue. Stakers vote weekly on which initiatives receive the fixed 25% of protocol revenue routed to incentives, and earn Liquity V1 fees plus any bribes. They cannot change that 25% split or any protocol parameter.
Holders hold no treasury, fee-routing or buyback rights.

(d) Current tokenholder governance rights and economic arrangements

You can stake your LQTY with no lockup.

Stakers vote on where weekly incentives are directed. They also earn revenue from Liquity V1 and bribes (when active) from Liquity V2. They cannot alter any protocol parameter, since Liquity V2 is immutable. Holders hold no treasury, fee-routing, buyback or other protocol-resource rights

(e) Control surface reliance

No DAO exists, and no evolution of the governance model is anticipated. Liquity V2 is immutable and cannot be changed or upgraded

(f) Dissolution authority

No DAO exists, so no dissolution authority or mechanism exists

04

Primary Foundation

For the Primary Foundation do the following independently. If a Foundation does not exist, state so for each sub question. Items (a)–(f) apply only if that entity exists; state explicitly that the entity doesn't exist. Definition: The primary Foundation can be explained as the entity which is directly involved in the issuance of the native token at launch.

  • (a) Entity — Type and jurisdiction.
  • (b) IP ownership & control — What IP the entity owns/controls (repos/code, trademarks/brand; license optional)
  • (c) Powers over DAO, treasury, protocol-controlled resources, and token administration — If any, describe the current powers over DAO governance, treasury actions, protocol-controlled resources (e.g. revenue), token administration, or reward parameters, and the method/threshold for each.
  • (d) Powers over DevCo — Explain whether the foundation can exert direct or indirect influence over decision-making of the DevCo.
  • (e) Contract/admin powers — Pause/upgrade/governance-executor authorities, and the method/threshold for each (e.g., veto/majority/super-majority).
  • (f) Current economic arrangements and distribution policies — Describe any current governance-approved, contractual, or programmatic mechanisms, if any, by which protocol-controlled resources, treasury assets, fees, revenue, rewards, or token distributions may be directed to this entity, its equityholders, contributors, or other participants. If no such mechanism currently exists, state that explicitly.

(a) Entity

There is no foundation.

(b) IP ownership & control

NA

(c) Powers over DAO, treasury, protocol-controlled resources, and token administration

NA

(d) Powers over DevCo

NA

(e) Contract/admin powers

NA

(f) Current economic arrangements and distribution policies

NA

05

Primary DevCo

For the Primary DevCo do the following independently. If an entity does not exist, state that explicitly across each sub-question. Items (a)–(f) apply only if that entity exists; state explicitly that the entity doesn't exist. Definition: The primary DevCo can be explained as the entity which is directly involved in the issuance of the native token at launch.

  • (a) Entity — Type and jurisdiction.
  • (b) IP ownership & control — What IP the entity owns/controls (repos/code, trademarks/brand; license optional)
  • (c) Powers over DAO, treasury, protocol-controlled resources, and token administration — If any, describe the current powers over DAO governance, treasury actions, protocol-controlled resources (e.g. revenue), token administration, or reward parameters, and the method/threshold for each.
  • (d) Powers over Foundation — Explain whether the DevCo can exert direct or indirect influence over decision-making of the Foundation.
  • (e) Contract/admin powers — Pause/upgrade/governance-executor authorities and the method/threshold for each (e.g., veto/majority/super-majority; "3/5 multisig").
  • (f) Current economic arrangements and distribution policies — Describe any current governance-approved, contractual, or programmatic mechanisms, if any, by which protocol-controlled resources, treasury assets, fees, revenue, rewards, or token distributions may be directed to this entity, its equityholders, contributors, or other participants. If no such mechanism currently exists, state that explicitly. Do not discuss hypothetical future dividends, repurchases, or distributions unless formally adopted.

(a) Entity

Liquity AG, Switzerland.

(b) IP ownership & control

https://github.com/liquity

(c) Powers over DAO, treasury, protocol-controlled resources, and token administration

No such powers.

(d) Powers over Foundation

No such powers.

(e) Contract/admin powers

No such powers.

(f) Current economic arrangements and distribution policies

No such powers.

Token Supply & Allocations

06

Initial Allocation

Download the Worksheet, enable macros, complete the Initial Allocation sheet, then use Convert To CSV to export the file for import here. To make edits after importing, update the worksheet, use Convert To CSV again, then re-import the new CSV.

07

Airdrop Process

State the project's airdrop status plainly, and back it up:

  • Never conducted and none planned for TGE: state so plainly.
  • Planned but not yet executed: state the target user segments (e.g., "stakers of X," "Aave users") and the allocation method (e.g., proportional to balance or net position), and commit to publishing a recipient wallet list in a public channel and providing it to Blockworks quarterly until the initial TGE airdrop is fully completed.
  • Already executed: state the covered user segments and the allocation method, and point to a per-address source such as CSV/TSV/JSON files, a Dune table, a full Merkle dump, GitHub repo files embedding per-address allocations, or RPC endpoints that expose claim/amount data; explorer links alone do not count.

The project has never conducted one and none is planned.

Transactions & Market Structures

08

Market Maker Agreements & Deals

Projects must disclose all material terms of market-making arrangements that affect token liquidity. If the project has no agreements or deals with market makers, state that explicitly. For each market maker, include in a table:

  • (a) Market maker's name — the market maker's name;
  • (b) Token allocation or loaned amount — the token allocation or loaned amount as a percentage of total supply;
  • (c) Duration/term of agreement — the duration/term of the agreement; and, where applicable,
  • (d) Name of agreement structure — label the financial vehicle being used in the agreement (i.e. loan, option/call, retainer model).

If no native tokens were loaned or allocated to market makers, state that explicitly; cash/fiat retainers or fees are not required for (b).

Market Maker Name

Token Allocation Committed

Term Duration

Structure Name

No market-making arrangements are disclosed in this filing.

09

Exchange Agreements & Deals

Projects must disclose all material terms of centralized or decentralized exchange listings that affect token liquidity. For each listing, include in a table:

  • (a) Exchange name / DEX pool — the exchange name (and, for DEX, the specific pool/pair);
  • (b) Token allocation for listing — the token allocation supplied or committed for listing as a percentage of total supply;
  • (c) Term Duration — the duration/term of any listing lockups, liquidity, or incentive programs; and, where applicable,
  • (d) Native-token listing fees — whether any listing fees were paid in native tokens, with amounts (tokens or % of supply), recipients, and any vesting or lock terms tied to the partnership.

If the project has no agreements or deals with CEX or DEX, state that explicitly; doing so earns full credit; cash/fiat fee amounts are not required for this item.

Exchange Name

Token Allocation Committed

Term Duration

Native Token Listing Fees

No CEX or DEX listing agreements or deals are disclosed in this filing.

Financial Disclosures & Risks

10

Prior Token Sales & Fundraising

Disclose all prior token sales by the Project — including fundraising rounds, any material OTC sales to investors, and any discounted market-maker sales. For each sale, provide:

  • (a) Series Name;
  • (b) Early-Stage Investment Instrument used (i.e. SAFT, STAMP, SAFE, SAFE+Token Warrant, etc.);
  • (c) Date of sale (at least month & year);
  • (d) Number of tokens sold (or % of total supply);
  • (e) Vesting schedule.

If no prior sales occurred, state that explicitly (e.g., "No prior fundraising, OTC, or discounted MM sales have occurred.").

Series Name

Investment Instrument

Date Of Sale

Number of tokens sold

Vesting Schedule

Seed

SAFT

September 2020

Raised $2.4M

Fully vested

Series A

SAFT

March 2021

Raised $8M

Fully vested

11

Previous Exploits Affecting The Native Token

If any, list prior exploits or incidents that directly affected the token, token supply, tokenholder balances, token contract, minting controls, burn mechanics, or custody of token supply. This question is not asking about general protocol, application, or smart contract exploits unless the incident directly affected the native token itself. If no prior incidents, state this explicitly (e.g., "No exploits affecting tokenholders or protocol funds as of YYYY-MM-DD").

  • (a) Date & component affected — Date (YYYY-MM or YYYY-MM-DD), chain(s)/component affected.
  • (b) Exploit vector summary — Plain-language summary of the exploit vector (what the hack was).
  • (c) Quantified impact — Quantified impact (assets/tokens affected or a clear "no loss of funds" statement).
  • (d) Remediation/response taken — Remediation/response taken (patches, upgrades, governance actions, compensation).
  • (e) Current status — Current status (resolved, in litigation, under investigation, refunded, etc.).
  • (f) References — Link(s) to post-mortem/advisory/PR.

(a) Date & component affected

No exploits affecting the token, supply, contract, minting controls or custody as of 2026-09-11.

(b) Exploit vector summary

No exploits affecting the token, supply, contract, minting controls or custody as of 2026-09-11.

(c) Quantified impact

No exploits affecting the token, supply, contract, minting controls or custody as of 2026-09-11.

(d) Remediation/response taken

No exploits affecting the token, supply, contract, minting controls or custody as of 2026-09-11.

(e) Current status

No exploits affecting the token, supply, contract, minting controls or custody as of 2026-09-11.

(f) References

No exploits affecting the token, supply, contract, minting controls or custody as of 2026-09-11.

12

Material Risk Factors (Regulation, Technology, Token Economics)

Describe material risk factors across the three categories below. Each category includes prompts to address at a minimum.

  • (a) Regulatory, Legal & Tax Risks — Describe how evolving laws and regulations could affect the project by answering, at a minimum, questions like:

  • Impact of Regulatory Change on TGE and Listings: (If applicable) How could evolving or conflicting laws and regulations affect your ability to complete the TGE, deliver tokens to purchasers, and list or maintain the token on trading venues in key jurisdictions?

  • Entity-Level Regulatory Impact: (If applicable) How could regulatory or legal changes impact your core entities (Foundation, DevCo, DAO, affiliated service providers), including enforcement actions, licensing requirements, or forced changes to structure or operations?

  • Tokenholder Tax Treatment: (If applicable) What uncertainties exist around how tokenholders may be taxed, and make clear that tokenholders are responsible for understanding their own tax obligations?

  • Jurisdictional & User Access Restrictions: (If applicable) If the project restricts access for certain jurisdictions or user types (e.g., U.S. persons, sanctioned countries, retail vs. professional), what are those restrictions and what risks do they create for users and for the project?

  • (b) Protocol, Technology & Security Risks — Describe risks to network and contract reliability, correctness, and safety by answering, at a minimum, questions like:

  • Bugs and Design Flaws: (If applicable) What bugs, design flaws, or implementation errors could exist in your core protocol code, smart contracts, and any bridges, rollups, or oracles that you depend on, and how could these lead to loss of funds or disruption of the protocol?

  • Security Measures & Their Limitations: (If applicable) What security measures have you taken (audits, formal verification, bug bounties), and what types of failures might these measures still fail to detect or prevent?

  • (c) Token Economics, Unlocks & Incentive Risks — Describe how the token's economic design and supply schedule could affect holders by answering, at a minimum, questions like:

  • Critical Economic Assumptions: (If applicable) Which economic assumptions (e.g., staking yields, fee revenue, liquidity incentives, MEV capture, demand for blockspace) are critical for protocol security, utility, and governance, and what happens if those assumptions fail?

  • Governance Control over Monetary Policy & Rewards: (If applicable) To what extent can governance change monetary policy, fee parameters, or reward allocations (e.g., inflation rate, treasury flows, incentive programs), and how could such changes adversely affect tokenholders?

(a) Regulatory, Legal & Tax Risks

Not applicable.

(b) Protocol, Technology & Security Risks

https://docs.liquity.org/v2-documentation/risk-disclosure

(c) Token Economics, Unlocks & Incentive Risks

Not applicable, it's 98.5% liquid/floating.

This Token Transparency Filing is provided for general informational purposes only. Blockworks reviews completeness only and does not verify or warrant the accuracy of individual answers. Liquity is solely responsible for the content, accuracy, and legality of its disclosures.

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