Vault token · Ethereum

Staked yBOLD ysyBOLD

A token representing a DeFi strategy. Its value depends on the underlying assets, strategy contracts and withdrawal arrangements.

In use on-chain· 3 open positionsAssessment temporarily unavailable

Sample protocol snapshot. These figures are not the current protocol state.

Assessment overview

The assessment could not be loaded. Available protocol data is shown below.

View risk data & lending terms ↓

Risk data & lending terms

Lending terms

Effective annual interest

2.19%

Current rate, adjusted for retained reserve

Retained reserve

20.0%

Current share of gross minted debt

Global minting limit

1.0M ZCHF

Across all originals · 5.7% used

Effective interest = (base rate + contract premium) ÷ (1 − retained reserve).

Positions & price exposure

Price exposure

0 ZCHF (0.00% of this asset's debt) is within 10% of its configured liquidation price at the last observed market price.

The last price observation is 1580 hours old; this asset's monitoring window is 1 hours. Price-based figures describe that earlier observation.

Collateral value / debt

116%

reference-priced collateral ÷ debt across the considered positions

Nearest price cushion

11.9%

reference-price distance to the highest configured liquidation price · median 13.6%

Debt within 10% of its liquidation price

0 ZCHF

within 5 %: 0 · within 20 %: 57.4k

Positions considered

active, with debt, at 0.8851 CHF / ysyBOLD

Debt by price cushion

≤ 0%–
0 – 5 %–
5 – 10 %–
10 – 20 %57.4k
20 – 40 %–
> 40 %–

Positions nearest their liquidation price

Position	Price cushion	Debt ZCHF	ysyBOLD	Liq. price	State
0x295C5e…1F9922v2 · clone	11.9%	23.0k	29'500.00	0.7800	open
0x07439d…bC3c98v2 · clone	15.3%	34.4k	45'908.52	0.7500	open

Cushion = reference-price distance to the configured liquidation price. Reference price: 0.8851 CHF.

What if the price falls?

Explore debt at or beyond its configured liquidation price. Positions and parameters stay unchanged. This estimates threshold exposure, not liquidation proceeds or losses; comparisons assume 1 ZCHF = 1 CHF.

Starting price: 0.8851 CHF / ysyBOLD, observed 07 Sept 2026, 14:22 UTC. This scenario uses an unverified or outdated reference price.

Compare price scenarios

Price drop	Reference CHF price	Debt beyond threshold	Share of asset debt	Positions
0%	0.8851	0 ZCHF	0.00%	0
10%	0.7966	0 ZCHF	0.00%	0
20%	0.7081	57.4k ZCHF	100.00%	2
40%	0.5311	57.4k ZCHF	100.00%	2

Positions

Position	Owner	ysyBOLD	Minted ZCHF	Coll. ratio	Liq. price	Effective interest	Reserve	Auction	Expires
0x07439d…bC3c98v2 · clone	0x8E87…0e9f	45'908.52	34.4k	118%	0.7500	2.19%	20%	24 h	26 Mar 2027
0x295C5e…1F9922v2 · clone	0x6616…7945	29'500.00	23.0k	114%	0.7800	2.19%	20%	24 h	19 Nov 2026
0xe8017A…F3e873v2 · original	0xF060…45f8	9'433.98	0	–	0.7500	2.19%	20%	24 h	26 Mar 2027

Effective interest includes the reserve adjustment. Collateral ratio = collateral value at the current price ÷ minted. Open a position on app.frankencoin.com ↗.

Changes & sources

Token contract0x23346b04…d63491cdEtherscan ↗

Governance reference: not linked. A discussion link and a published assessment do not by themselves verify an adopted parameter set.

All protocol parameters

Reference market price

0.8851 CHF

$1.09

Minted ZCHF

57.4k

debt against this collateral

Remaining aggregate limit

942.6k

of 1.0M ZCHF total limit

Estimated collateral value

75.1k CHF

84'842.50 ysyBOLD locked

Open positions

3 total · 1 original / 2 clones

Debt / collateral value

76.5%

debt ÷ reference-priced collateral

Contract risk premium (V2)

0.75%

risk premium above the lead rate

Annual fee rate on gross debt

1.75%

= base rate + contract premium, before reserve adjustment

Challenges

active · 0 total

Source: protocol aggregate (api.frankencoin.com/ecosystem/collateral/stats) · price via defillama (07 Sept 2026, 14:22 UTC)

Community discussion

Proposal: Add BOLD and ysyBOLD (Staked yBOLD) as collateral

#94 · Acceptable Collaterals · opened 18 Mar 2026 by ManBehindKren · 6 comments · ▲ 1 · matched by title

Reply on GitHub

Original post (show)

Introduction

BOLD is a USD-pegged overcollateralized stablecoin built by Liquity. It can be permissionlessly minted against WETH, wstETH and rETH at user-set interest rates. BOLD contract is immutable and tokens can never be frozen. Each BOLD token is always redeemable for $1 worth of underlying collateral. Adding BOLD as collateral would open new arbitrage pathways without the risk of collateral freezing.

ysyBOLD is an auto-compounding ERC-4626 vault built by Yearn Finance over Liquity V2's BOLD stablecoin. It is instantly redeemable for an accruing share of BOLD that accumulates in the underlying vault. Yield is sourced from Liquity V2 stability pools that earn interest and liquidation fees. Adding ysyBOLD as collateral would complement the BOLD collateral, allowing users exposure to (USD denominated) pure DeFi yield while holding ZCHF.

Tokens info

Metric	BOLD	ysyBOLD
Protocol	Liquity	Yearn Finance
Ethereum contract	0x6440f144b7e50d6a8439336510312d2f54beb01d	0x23346B04a7f55b8760E5860AA5A77383D63491cD
Supply	$30.32M	$4.52M
Price	~0.78 CHF	~0.83 CHF
Underlying strategy	N/A	Auto-compounding in Liquity V2 Stability Pools (WETH, wstETH, rETH) yBOLD \| Yearn Docs
Redeemability	Instant redemption for underlying collateral at face value	Instant and feeless redemption for a share of underlying BOLD.

BOLD

BOLD is Liquity V2's USD-pegged stablecoin overcollateralized by WETH, wstETH and rETH at fixed, user-set rates. Liquity V2’s contracts are immutable making BOLD decentralized and permissionless at the most fundamental level. BOLD holders can, at any time, redeem BOLD for exactly 1$ worth of basket of underlying collateral tokens with a small redemption fee (Redemptions and Delegation | Liquity Docs). Troves with lowest user-set interest rate get redeemed first, regardless of the token. Collateral price at the time of redemption/liquidation is determined with Chainlink oracle. BOLD has recently been awarded A- rating by Bluechip outranking USDC and DAI.
The current top 3 liquidity venues for BOLD are BOLD-USDC pool on Curve (TVL $7.43M), Uniswap v4 BOLD-USDC pool (TVL $2.22M) and Uniswap v3 BOLD USDC pool (TVL $1.43M). Complete BOLD analytics is available on Dune.

BOLD reserve composition (source: Pharos Watch)

ysyBOLD

ysyBOLD is an auto-compounding liquid representation of Yearn’s V3 yBOLD vault that deposits BOLD across Liquity V2's stability pools to optimise yield. Yield is sourced from interest paid by borrowers and liquidation gains. Upon liquidation, BOLD in stability pools is burnt to cover borrower’s debt and the system rewards pool depositors with liquidated collateral worth 105% of burnt BOLD. Yearn solvers use Dutch auction to swap rewarded collateral back to BOLD that is redeposited in vault. More information is available in Yearn Docs.
ysyBOLD is always redeemable for an increasing share of underlying BOLD with no fee, no delay, and no withdrawal restriction. At the moment Yearn is charging no performance or management fee, however, implementation of such fees is enforceable through governance vote.

TVL and APY chart for yBOLD vault (source: Defillama)

Proposed parameters

Parameter	BOLD	ysyBOLD
Reserve requirement	15%	25%
Risk premium	0.25%	0.75%
Liquidation price	0.72	0.76
Mint limit	1,000,000 ZCHF	500,000 ZCHF
Minimum collateral	7500 BOLD	7500 ysyBOLD
Challenge period	24 hours	24 hours

The parameters are set conservatively mainly to account for low circulating supply of BOLD and because there is no direct ZCHF-BOLD swapping path. The reserve requirement mitigates intraday forex volatility during challenge period, while risk premium compensates the equity pool for taking on the tail risks (discussed in the risk section). Additionally, higher reserve requirement, risk premium and mint limit for ysyBOLD simultaneously reduce looping profitability and its influence on ZCHF peg, while still keeping borrowing attractive.
Minimum collateral amount is set comfortably above the minimum BOLD minting amount, ensuring that challengers can obtain BOLD at favourable price (minting or buying) in any market condition. The 24h challenge period incentivizes timely challenges while giving bidders enough time to participate in the auctions.

Key advantages

Censorship-resistance: Liquity contracts are immutable.
Permissionless minting: BOLD can be minted against WETH, wstETH or rETH at user-set interest rate and feelessly staked in yBOLD to obtain ysyBOLD. This mechanism mitigates the risk of low liquidity and enables challengers to obtain ysyBOLD at fair value regardless of TVL and market concentration.
Instant redemption mechanism: As ysyBOLD can be feelessly redeemed for underlying BOLD at any time and BOLD can further be redeemed for a basket of WETH, wstETH or rETH at face value, both collaterals remain attractive for bidders in any market condition.
Hybrid carry trade: ysyBOLD yield spikes from liquidation proceeds in volatile crypto market, while ZCHF exposes user to forex volatility and Frankencoin native savings yield, enabling unique multi-currency yield strategies.

Risks

Official risk disclosures and audits of both protocols are accessible in respective documentations:

Liquity contract exploit is a low probability and high impact event as it would essentially lead to irrecoverable loss in BOLD value.
The multi-layered smart-contract dependency of ysyBOLD introduces additional risk compared to direct collateral. This is mitigated by a relatively high reserve requirement and low minting cap.
Temporary value drop of ysyBOLD: In case of a severe and sudden ETH crash, yBOLD vault solvers may be unable to swap liquidated collateral at a fair price, leading to temporary underpricing of ysyBOLD.
Yearn vaults are not immutable, exposing collateral to potentially malicious governance actions.
Product novelty: Despite extensive audits, both products are relatively new (<1 year).

Author disclaimer:

I am not in any way affiliated with Liquity or Yearn finance apart from holding some ysyBOLD.

Comments

luziusmeisser · 18 Mar 2026 · ▲ 1
Thanks, interesting!

What is the current yield on ysyBOLD? Do we have quantitative estimates for the risk of ysyBOLD? What would take for it to depeg?

Since holding ysyBOLD is more attractive than holding BOLD, I doubt there is much demand for BOLD as a collateral.
- ManBehindKren · 18 Mar 2026
  The current yield is 2.8% and can be accessed here: https://yearn.fi/vaults/1/0x9F4330700a36B29952869fac9b33f45EEdd8A3d8
  
  For ysyBOLD to depeg ETH would have to crash so suddenly that Yearn is not able to swap stability pool rewards to BOLD at a favourable price, essentially leading to vault TVL < ysyBOLD liabilities. I also imagine similar could happen in case of a sudden liquidity drain from BOLD LPs, which is unlikely, given that it is spread across major DEX protocols.
  
  Michael from Liquity can probably elaborate further and he may also be able to provide quantitative risks.
- UncleBlock · 19 Mar 2026
  This is a good summary.
  I would like to highlight two things:
  
  The current APR only reflects the borrowing rate. Liquidation gains are like a yield option on top and are not included in this number (as the timing of liquidations can't be predicted). Therefore, the BOLD yield consists of the borrow rate and liquidation gains. Historically, this has yielded 6% over the past 9 months. ~4.7% coming from borrowing rats and ~1.3% from liquidation gains.
  
  The end-to-end redeemability of ysyBOLD to (staked) ETH which always provides a permissionless liquid exit route. ysyBOLD can be redeemed for BOLD, and BOLD can be redeemed for staked ETH at any time.
AndxyO · 18 Mar 2026 · ▲ 1
Thank you for your professional research.

It sounds very interesting, I couldn't check al the details wright now, but it sounds good. I'm always skeptical with some kind of yield bearing tokens, so not sure about ysyBOLD. But as it is labeled as secure on yearn it is debatable.

What does the label " Stability Pool" mean? I hope it has nothing to do with https://stability.farm/ ? Which is a good protocol overall, but there were issues with its Metavaults.
- AndxyO · 18 Mar 2026
  By the way: what is the difference between https://www.coingecko.com/en/coins/legacy-bold and https://www.coingecko.com/en/coins/bold-2 ?
  One negative thing seen without deeper research is a very low user interest on Coingecko (add to portfolio *).
- ManBehindKren · 18 Mar 2026
  Yearn's risk score breakdown is available here: https://docs.yearn.fi/developers/security/risks/risk-score
  
  There is indeed a lot to grasp with this collateral and I wouldn't write this proposal if I hadn't been familiar with Liquity now for more than a year.
  
  To summarize the Stability pools mechanics:
  Stability pools operate within Liquity's ecosystem. There is no external protocol involved. When a position on Liquity gets liquidated, the mechanism burns an amount of BOLD deposited in stability pool that equals the amount of BOLD borrowed in that position. Since minimal collateralization in Liquity V2 is 105%, every timely liquidation (provided Chainlink oracle is functional - mechanisms to mitigate oracle failures also exist) provides liquidated collateral valued at 105% of burnt BOLD to the stability pool. Additionally, 75% of interest payments go to stability pools as well.
  ysyBOLD optimizes BOLD allocation across stability pools and redeposits the rewards. Rewards from liquidation proceeds are swapped in a Dutch auction to BOLD by Yearn's solvers.
  
  The correct BOLD token is https://www.coingecko.com/en/coins/bold-2.
  As far as I know Liquity redeployed BOLD early on and since the contracts are immutable by default, there is no way to shut down the first version (legacy BOLD), which still functions just the way it is intended to function. There is no utility for legacy BOLD in DeFi and no functional frontend, hence much lower supply.
- ManBehindKren · 18 Mar 2026
  In addition, ysyBOLD is one of the collaterals in Asymmetry Finance (Liquity's friendly fork): https://usdaf.asymmetry.finance/borrow
- UncleBlock · 19 Mar 2026
  On the safety and security of BOLD:
  
  BOLD has an A- rating from Bluechip: makes it the highest rated DeFi stablecoin (besides our Liquity V1 stable LUSD)
  
  BOLD has an A rating on Pharos Watch: currently the best rated stablecoin of 158 tracked stables
- omgcorn · 21 Mar 2026
  
  By the way: what is the difference between https://www.coingecko.com/en/coins/legacy-bold and https://www.coingecko.com/en/coins/bold-2 ? One negative thing seen without deeper research is a very low user interest on Coingecko (add to portfolio *).
  
  Hey this was just because of the relaunch long ago
- AndxyO · 21 Mar 2026
  BOLD sounds promising. I think you should propose it. I am still not sure about ysyBOLD.
- ManBehindKren · 23 Mar 2026
  
  BOLD sounds promising. I think you should propose it. I am still not sure about ysyBOLD.
  
  I'm curious to hear your reservations regarding ysyBOLD. Are there any other issues you identified that are not outlined in the proposal?
- AndxyO · 23 Mar 2026
  No, none other than the ones you already mentioned. And my personal experience with various yield-bearing stablecoin tokens that have depegged, not because of their design, but because someone introduced a risk that the protocol couldn't prevent.
  A good example of this is wstkscUSD on Sonic. In my opinion, it's a very secure stablecoin (scUSD). And there are many like it.
  That's it.
luziusmeisser · 19 Mar 2026 · ▲ 1
Note: the minimum collateral must correspond to 5000 ZCHF worth of the collateral, that would be 7500 BOLD or so. Apart from that, the parameters seem sensible.
- ManBehindKren · 19 Mar 2026
  Fixed that in the proposal. Thanks!
johnnyonline · 21 Mar 2026 · ▲ 2
love seeing this - thanks for putting the proposal together

happy to help however useful on integration, risk considerations, or anything else
omgcorn · 21 Mar 2026 · ▲ 1
Yearn's partner program is back too, so we will share half the fees with you every month. The integration is easy. Yearn vaults as collateral for a CDP are one of the best use cases

https://partners.yearn.fi/
emduc · 23 Mar 2026 · ▲ 1
Regarding the risk premium, I would argue for 0% on BOLD and eventually 0.5% on ysyBOLD.
I believe this is coherent with the 0% risk premium suggested for USDC and USDT in a previous forum post.
Would anyone object to that?
- AndxyO · 23 Mar 2026
  0% for BOLD.
  I don't wanna give a advice for ysyBOLD, as a made my stance above.
  
  Why don't start with BOLD and and give ysyBOLD some time?
  Time will tell the risk.
  But if you all are more for ysyBOLD I stop opposing, let's take the risk.