Can Liquity V2 Solve The Stablecoin Trilemma?

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. ------ 🔗 Essential Show Links 🔗 ► Subscribe on Youtube: https://youtube.com/@defidad ► Subscribe on Apple: https://tinyurl.com/edgepod ► Subscribe on Spotify: https://tinyurl.com/edgepodspotify ► Subscribe on Linktree: https://linktr.ee/edge_pod ► Follow DeFi Dad: https://twitter.com/DeFi_Dad ► Follow Nomatic: https://twitter.com/Nomaticcap ► Learn about DeFi and Web3: http://defidad.com/ ------ The Edge Podcast Sponsor Resources ⚖️ KYBERSWAP | DEX AGGREGATOR, AMM, AND KYBER AI TRADING ANALYTICS 🥑 INSTADAPP | THE NEW AVOCADO SMART CONTRACT WALLET ⛩️ UTOPIA | PAYROLL AND EXPENSE MANAGEMENT FOR DAOS 🙋‍♀️ Interested to sponsor The Edge Podcast? Fill this out! ------ 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 ------ 🔗 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 ------ 🙏 The Edge Podcast is produced by 4RC Labs. If you're a DeFi/Web3 builder, contact our team at: https://fourthrevolution.capital/ All opinions expressed by hosts and podcast guests are solely their own opinions and not necessarily those of Fourth Revolution Capital. Podcast guests and 4RC may have positions in the assets or other matters discussed in this podcast. This podcast is for informational purposes only and should not be relied upon as a basis for investment decisions. Do your own research. This is not a recommendation or endorsement to buy any token(s) related to any platform(s) discussed.