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Changes from Liquity V2

Firm Money is a friendly fork of Liquity V2 built for Status Network, an Ethereum L2. This page documents all technical changes from the base Liquity V2 protocol.

Overview of Changes​

  • New collateral types and price feeds for Status Network assets (ETH, wstETH, rETH, SNT, LINEA, sGUSD)
  • Stablecoin is $USF (not $BOLD)
  • Updated parameters for the Status L2 environment (gasless transactions, lower minimum debt)
  • Governance-controlled collateral branches and debt limits
  • Token delegation via Superfluid SuperToken proxy
  • Using Firm Money earns Karma, the Status Network reputation and governance token
  • USF liquidity anchors core pairs on Orvex, the native Status Network DEX

Detailed Technical Changes​

New Collaterals & Price Feeds​

Updated price feeds and oracles for these assets on Status Network:

  • ETH (WETH)
  • wstETH (Wrapped Staked ETH)
  • rETH (Rocket Pool ETH)
  • SNT (Status Network Token)
  • LINEA
  • sGUSD

Each collateral has its own branch with independent TroveManager, StabilityPool, and PriceFeed contracts, as in base Liquity V2.

Updated Parameters for Status L2​

  • $0 gas deposits when creating new troves (Status Network is gasless)
  • Lowered minimum debt amount to $200 (vs $2000 in base Liquity V2)
  • Other small parameter tweaks for the L2 environment

Governance-Controlled Collateral Branches​

Ability to add new collateral branches using governance. In base Liquity V2, collateral branches are fixed at deployment. Firm Money allows the governance address to register new collateral types via the CollateralRegistry.

Debt Limits​

Per-branch debt limits governed by a governance address, adding a safety layer not present in base Liquity V2.

  • Each collateral branch has a debtLimit stored in its TroveManager
  • Debt limit can be raised by governance by a max factor of 2x per transaction (can be repeated over multiple transactions)
  • Debt limit can be lowered to any amount at any time (still must use the timelock)
  • Interest accrual is allowed to push debt over the limit — the limit only restricts new debt issuance
  • Accessible to the CollateralRegistry via the collateral index

Centralization risk: Once the governor is set in CollateralRegistry, there is no function to update this value. A compromised key could block new debt issuance or manipulate limits.

Token Delegation (ActivePool)​

ActivePool.sol has a new delegateTokens function:

  • Any tokens can be delegated to the delegate role
  • The role can be updated by governance (the NERI holder DAO)
  • Anyone can safely call the delegate function since it always delegates to the delegate role

USF Token — SuperToken Proxy​

The stablecoin (USF) is no longer a standalone ERC-20. It uses a Superfluid SuperToken UUPS proxy pattern:

  • _mint, _burn, _transfer replaced with selfMint, selfBurn, selfTransfer from the Superfluid SuperToken
  • ERC-20 imports removed in favor of the UUPS proxy ERC-20 from Superfluid (same underlying OpenZeppelin ERC-20 implementation)
  • Many deployment changes as a result
  • OpenZeppelin remaps in many places due to circular dependencies
Developer Note

Do not use the Foundry deal() cheatcode with the USF token in testing, since the storage layout differs from what Foundry expects for a standard ERC-20.

Governance Capabilities​

Firm Money's governance (NERI holders) can manage:

  • Protocol Liquidity Incentives (PIL) distribution
  • Protocol revenue direction to external initiatives
  • Fee parameters, LTV requirements, minimum debt thresholds
  • Collateral debt limits (per-branch)
  • Adding or removing collateral branches via CollateralRegistry

This replaces Liquity V2's more limited governance model.

Status Network Integration​

Firm Money is deeply integrated into the Status Network L2 economic engine:

  • Unlocks native asset capital productivity (SNT, LINEA, sGUSD)
  • USF liquidity anchors core pairs on Orvex, the native DEX
  • Using Firm Money earns Karma, the L2 reputation and governance token
  • Community governance can boost Firm Money yields with L2 native yield

What Remains the Same​

The core Liquity V2 mechanisms are preserved:

  • Core redemption mechanism — 1 USF redeems for $1 worth of collateral, minus fees
  • Redemption fee mechanics — baseRate with fee spike and time-based decay
  • User-set interest rates — Borrowers choose their own annual interest rate
  • Ordered Troves — Sorted by annual interest rate (low to high)
  • Liquidation mechanisms — SP offset first, then redistribution to active Troves
  • Stability Pool algorithm — Same Product-Sum algorithm from Liquity V1/V2
  • Individual overcollateralization — Each Trove individually overcollateralized
  • Branch-level overcollateralization — Each branch measured by TCR
  • Troves as NFTs — Freely transferable
  • Batch and individual delegation — Interest rate management
  • Collateral branch shutdown — Under extreme conditions (TCR < SCR or oracle failure)
  • Zombie Troves — Redemptions leave Troves open, tag as zombie below MIN_DEBT
  • CCR restrictions — Extra borrowing restrictions when TCR < CCR

Audit Coverage of Changes​

The Firm Money-specific changes have been audited by:

  • Multiple internal security reviews (August–September 2025)
  • Shred Security (November 2025)
  • Cyfrin (March 2026) — Focused specifically on the diff from base Liquity V2. See the Audit Reports page for details.