LUSD is Liquity V1's decentralized US-dollar stablecoin, issued against ETH collateral under an immutable, interest-free borrowing model.
Key Data
| Backing | Overcollateralized by ETH, with a minimum collateral ratio of 110%. |
| Redemption | Redeemable for ETH at face value at any time, subject to a redemption fee. |
| Peg Currency | USD |
| Launched | 2021 |
Supported Networks
Cross-Chain Supply ($28M total)
Mint / Burn Mechanism
Minted by borrowing against ETH in a Trove; burned on repayment. Redeemable for ETH at face value.
Use Cases
Overview
LUSD is the US-dollar stablecoin of Liquity V1. It is minted by locking ETH as collateral and borrowing against it, with no central issuer and no protocol governance.
How It Works
Borrowers open Troves, deposit ETH, and draw LUSD at a minimum collateral ratio of 110%, paying a one-time borrowing fee rather than ongoing interest. A Stability Pool absorbs liquidations.
Reserve Backing
LUSD is backed by ETH collateral held in the protocol's smart contracts, not by fiat reserves, so there is no fiat reserve attestation.
Supported Networks
LUSD is issued on Ethereum.
Other USD Stablecoins
Profile compiled from issuer disclosures, regulatory filings, press releases, and financial media. Market and on-chain data sourced directly or via third-party providers. See methodology.