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The long-awaited relaunch of Liquity v2 this month — after an unfortunate bug scuttled the first deployment — marked a major step forward for decentralized, censorship-resistant borrowing. However, it’s limited to ETH, stETH and rETH as collateral.

To expand collateral options, “friendly forks” are encouraged. Two promising new Bitcoin-backed stablecoins are launching with Liquity’s tech: Alpen Labs’ Bitcoin Dollar (BTD) and Asymmetry’s USDaf.

Built around Liquity’s battle-tested, governance-free model, v2 brings improved capital efficiency and user-set interest rates in…

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