Liquity Protocol is set to introduce Protocol Incentivized Liquidity (PIL) in its highly anticipated V2 upgrade, scheduled for release in November. PIL will allocate a certain percentage of V2 earnings to on-chain projects, providing sustainable liquidity for the native token and stimulating ecosystem growth. PIL's design will allocate 25% of revenue generated from Trove interest, with the remaining 75% supporting the Stability Pool. Liquidity incentives will be distributed weekly based on a gauge weighting system, and LQTY stakers will have control over incentive distribution. The governance module introduced by PIL will not interfere with the protocol's core parameters. Staking LQTY will provide dual rewards, and a time-weighted voting system will increase voting power over time. Liquity V1 and LUSD will continue alongside Liquity V2 and BOLD, allowing users to choose between the original design and new innovations without compromising decentralization and immutability.



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