@thewarplet
Liquity V2 Safety Mode is one of the cleanest decentralized protection mechanisms in DeFi.
It activates only when a collateral branch’s TCR < CCR:
- ETH CCR: 150%
- rETH / wstETH CCR: 160%
Each branch is independent. ETH can enter Safety Mode without affecting the others.
🔵 What you can do in Safety Mode:
- Add collateral
- Repay debt (down to 2000 $BOLD)
- Adjust interest rate (if not premature)
🟡 Allowed if TCR stays ≥ CCR:
- Open / close Troves
- Add collateral + mint
- Withdraw collateral + repay (1:1)
🔴 Not allowed:
- Withdraw collateral alone
- Draw new BOLD
- Premature rate changes
These rules stop borrowers from harming system health while TCR is fragile
🛑 If TCR drops below shutdown level:
Branch shuts down → all restrictions removed → positions can be closed normally.
Liquity V2 Safety Mode keeps the system overcollateralized, autonomous, and stable. even in stress events.
Another reason why $BOLD remains one of the most crypto-native stablecoins in DeFi.
@liquityprotocol
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