Liquity BOLD (BOLD)

A notable shift in stablecoin risk ratings just happened.

@bluechip_org has assigned $BOLD an A- which technically places it significantly above incumbents like $USDC and $DAI.

But how? Let's dive in our analysis 🧵

— — —

► Deconstructing the Rating

Bluechip is renowned for creating reliable evaluations for stablecoins, using a methodology that considers factors like stability, management, and governance.

And they just categorized BOLD as A- rating.

BOLD’s A- is driven by maximal scores in governance and decentralization. The rating does not just reward a steady peg. It rewards the removal of human failure vectors.

While USDC and DAI retain upgradeability and centralized dependencies, BOLD removes them entirely

➠ The Contrast $PYUSD vs. BOLD

The "A-" tier now contains two polar opposites. This illustrates that safety has two distinct paths.

→ PYUSD (TradFi Path): Safety derived from regulation, bank deposits, and legal recourse.

→ BOLD (DeFi Path): Safety derived from on-chain collateral and immuta

@bluechip_org Here is the official announcement from BOLD:

https://t.co/7SzFGJ2uNY

A notable shift in stablecoin risk ratings just happened.

@bluechip_org has assigned $BOLD an A- which technically places it significantly above incumbents like $USDC and $DAI.

But how? Let's dive in our analysis 🧵

— — —

► Deconstructing the Rating

Bluechip is renowned for creating reliable evaluations for stablecoins, using a methodology that considers factors like stability, management, and governance.

And they just categorized BOLD as A- rating.

BOLD’s A- is driven by maximal scores in governance and decentralization. The rating does not just reward a steady peg. It rewards the removal of human failure vectors.

While USDC and DAI retain upgradeability and centralized dependencies, BOLD removes them entirely

➠ The Contrast $PYUSD vs. BOLD

The "A-" tier now contains two polar opposites. This illustrates that safety has two distinct paths.

→ PYUSD (TradFi Path): Safety derived from regulation, bank deposits, and legal recourse.

→ BOLD (DeFi Path): Safety derived from on-chain collateral and immuta