In the ever-evolving landscape of decentralized finance (DeFi), the search for secure, transparent, and truly decentralized stablecoins has become a priority for both institutional and private users.
In this context, BOLD, the stablecoin pegged to the US dollar developed by Liquity, has distinguished itself by receiving an A- rating from Bluechip, the independent rating agency specializing in stablecoins.
This achievement places BOLD at the top among stablecoins fully backed by crypto-native collateral, surpassing well-known names like USDC and DAI, both rated B+.
Summary
Bluechip Evaluation: Rigorous Criteria and Transparency
Bluechip serves as a benchmark for evaluating stablecoins, applying stringent criteria that include stability, management, decentralization, and governance. The rating obtained by BOLD reflects perfect scores (1.0) in Management, Decentralization, and Governance, placing it among the best stablecoins analyzed to date and on par with PayPal’s stablecoin, PYUSD.
Bluechip’s methodology focuses on key elements such as collateral quality, peg maintenance mechanisms, risk management, and governance structure.
The goal is to provide users and institutions with reliable tools to understand the differences between various stablecoin models, especially at a time when these represent the backbone infrastructure of the crypto and DeFi markets.
BOLD: Decentralization and Security Without Compromise
What makes BOLD unique in its kind is its complete decentralization and the absence of counterparty risks. The stablecoin is exclusively backed by Ethereum-native assets, such as ETH and the main liquid staking tokens (wstETH and rETH), without relying on banks, custodians, or off-chain reserves. This approach eliminates the risk of discretionary interventions and offers users a transparent and predictable alternative.
The BOLD protocol operates through immutable smart contracts, devoid of administrative keys and without the ability to freeze or blacklist funds.
All minting and redemption operations are accessible to anyone, at any time, and the stablecoin is always redeemable for the equivalent of 1 dollar in underlying collateral. The level of overcollateralization exceeds 200%, ensuring solid coverage even in adverse market conditions.
A Model Without Governance and Risks of Arbitrary Modification
Unlike many centralized or semi-centralized stablecoins, BOLD eliminates any form of discretionary governance. There are no committees, administrators, or intermediaries capable of altering the protocol’s rules. This means that users can rely on a system with clear, immutable, and on-chain verifiable rules in real-time.
According to Michael Svoboda, founder of Liquity Protocol, “BOLD is designed so that users do not have to rely on issuers, banks, or governance committees, but only on code. The A- rating with perfect scores for decentralization and governance demonstrates that a crypto-native stablecoin can meet institutional risk standards without depending on centralized intermediaries.”
An Alternative for Institutions and Advanced Users
The architecture of BOLD is specifically designed for DeFi treasuries, funds, and experienced users who wish to diversify their exposure to stablecoins with a truly sovereign and crypto-native asset.
Total transparency, the absence of blacklists, and the ability to verify every transaction directly on the blockchain make BOLD an ideal choice for those seeking control, transparency, and predictable rules.
Liquity V2, the new version of the protocol, distributes 100% of the revenue directly to BOLD users through a native model, without lending users’ collateral and allowing full withdrawals at any time. This structure eliminates the risk of arbitrary changes to economic rules, providing long-term operational certainty.
The Liquity Experience: From LUSD to BOLD
Liquity is not new to the decentralized stablecoin sector. The team has already developed LUSD, one of the longest-standing and most reliable stablecoins, which has reached a total value locked of $5 billion and has operated for over four years without security incidents.
BOLD represents the second generation of Liquity-branded stablecoins, expanding the principles of immutability and governance-free operation with greater capital efficiency and extended functionalities.
The Role of Independent Ratings in the Future of Stablecoins
With the growing global debate on regulation and transparency of stablecoins, independent assessments like those from Bluechip are becoming essential tools for risk management. Bluechip, established after the collapse of Terra/LUNA in 2022, applies a rating system ranging from A+ to F and has demonstrated remarkable accuracy: 75% of stablecoins rated F subsequently lost their peg.
The A- rating of BOLD demonstrates that decentralized and crypto-native stablecoins can achieve the highest levels of security, offering an inherently more prudent risk profile compared to bank-backed alternatives.
Conclusions: BOLD Marks a New Milestone for DeFi
The rise of BOLD as the benchmark stablecoin for transparency, decentralization, and security marks a significant step for the entire DeFi ecosystem. In a sector where trust in code and on-chain transparency is crucial, BOLD establishes itself as a reference model for those seeking stability without compromises and without relying on centralized intermediaries.
For more information on Liquity and BOLD, you can visit the official website [liquity.org](https://www.liquity.org).
