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Feb 15, 2026
Michael Svoboda, CEO of Liquid AG and steward of the Liquity protocol, builds governance-free, immutable stablecoin systems. He discusses Liquity V2 and the BOLD stablecoin. Topics include borrower-set interest rates, multi-collateral ETH and LST backing, redemption mechanics that protect the peg, fee distribution to users, and why immutable, peer-to-peer stablecoins offer a different risk profile from traditional rails.
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Immutable, Governance-Free Stablecoins
- Liquity intentionally removes governance to offer predictable, immutable on-chain dollars without human committees.
- Michael Svoboda argues this gives users sovereign dollars and reduces intermediary risk.
User-Set Rates Replace Governance Control
- Liquity V2 introduces user-set interest rates so borrowers choose their cost of capital directly.
- This market approach replaces governance- or algorithm-driven rates with peer negotiation between borrowers and holders.
Set Borrowing Rates To Avoid Redemption
- Borrowers must set yields high enough to attract stablecoin holders who otherwise can redeem at face value.
- Use redemptions as a market discipline: low-rate borrowers face higher redemption risk, so increase your rate to avoid being targeted.