Liquity USD

Liquity USD, ticker LUSD, is a US dollar-pegged stablecoin issued by the Liquity Protocol, a decentralized borrowing system built on Ethereum and bridged to several other networks including Arbitrum, Optimism, Polygon, and zkSync. It is designed for people who want to borrow against Ether as collateral without paying ongoing interest, receiving the loan proceeds in a dollar-denominated token they can spend or transfer freely. The protocol targets anyone seeking decentralized, governance-free access to liquidity without selling their Ether.

Borrowers deposit Ether into Liquity smart contracts and draw LUSD loans at zero percent interest, subject to a minimum collateral ratio of 110 percent. If a position falls below that ratio, it can be liquidated using LUSD held in a communal Stability Pool, whose depositors absorb the collateral in return. LUSD is also directly redeemable for the underlying Ether collateral at face value, which mechanically anchors it near one dollar; no governance body can alter these rules because the contracts are immutable.

Because Liquity charges zero percent interest on loans, there is no ongoing interest fee stream in the conventional sense; the protocol instead collects one-time fees at loan origination and redemption. The data provided does not include a fee revenue figure, so fee-based measures that this site might calculate for other assets are not applicable here. The circulating stablecoin supply stands at 26,679,656.64 LUSD on a point-in-time basis, and that supply has contracted by 3.22 percent over the last 30 days, which affects the aggregate base against which any protocol activity would be measured.