Detailed analysis
1. The main driver: Adoption and V2 releases
The second version of Liquity was launched on May 19, adding important new features such as user-defined borrowing rates and support for multiple collaterals including WETH, rETH, and wstETH. The average interest rates stabilized around 3% (source). On May 20, the Chainlink CCIP protocol was integrated, allowing the BOLD stablecoin to operate across multiple networks such as Arbitrum, Base, and Optimism, enhancing cross-chain liquidity and increasing Total Value Locked (TVL). These updates align with the decentralized finance (DeFi) trend towards providing flexible and distributed loans, attracting more capital to the protocol.