High Yield USD

hyUSD

hyUSD is a decentralized stablecoin that provides convenient access to DeFi yields, enabling holders to earn passive income on their dollars. Governance aims to take low to moderate risk to return high DeFi yields in order to mitigate against inflation.

Risk Rating
Good
$0.00
Summary
What we like
hyUSD is a fully-collateralized, community-owned stablecoin issued through Reserve's rToken model and overcollateralized by RSR stakers.
What we like less
hyUSD has exposure to multiple dependencies with moderate risk as it leverages DeFi to generate its yield. Further, RSR overcollateralization may not scale well as the stablecoin's market cap expands.
What it means for you
Offers you a simple way to earn passive income on USD in order to serve as a hedge against inflation.
Information
Blockchain
  • Ethereum
Key Metrics
  • Total Supply: 1,172,504
Risk Assessment
Good
Asset Strength

hyUSD is a low-cap, fully collateralized asset. This asset depends on two centralized entities for custody services. This asset is exposed to the underlying risks of Reserve, Convex, Curve, Maker and Flux, which are protocols rated as Good, Good, Best, Best and Average, respectively.

hyUSD is a stablecoin that often trades more than 100bps off its peg to USD, making it a highly volatile store of value.

Asset Tokenomics

hyUSD has an uncapped supply but has inflation control or burn mechanisms in place.

Dependencies

Convex


Maker


Curve


Reserve


Flux

Things to know about hyUSD

How is hyUSD created?

hUSD is a fully-backed, yield-generating stablecoin that is minted through the Reserve protocol. Reserve is a platform that enables anyone to create and use assets (RTokens) that are backed by a community-defined basket of crypto assets. hyUSD can be permissionlessly minted and redeemed for its underlying basket of assets. RSR stakers provide further overcollateralization protection for hyUSD holders in case of defaults in exchange for a cut of the yield earned. Governance is conducted on-chain and managed by RSR stakers, which aligns incentives with eUSD holders.

What is hyUSD used for?

hyUSD provides users with an alternative fiat currency that is pegged to 1 USD. Reserve has purchased a substantial amount of CRV tokens to incentivize liquidity for its rTokens. hyUSD can be held as a treasury asset for a DAO or company seeking to diversify its crypto holdings. Users can simply earn yield on their hyUSD by holding it in their wallets.

How is the price of hyUSD kept stable?

hyUSD is designed to trade at 1 USD as it is fully collateralized by its basket of collateral assets. A portion of yield earned by the underlying collateral is directed towards RSR stakers for providing overcollateralization protection. hyUSD maintains its peg through the issuance and redemption mechanisms that are used by arbitragers. For example, when hyUSD is trading below $1, an arbitrager will buy hyUSD at the discounted price and redeem it for the basket of collateral assets, thereby reducing the supply of hyUSD in circulation. When hyUSD is trading above $1, arbitragers would take advantage by minting hyUSD with the underlying collateral and selling on the open market until the peg has been restored to 1 USD.

hyUSD Pools
Yearn USD Market Making
20.49%
Yield 30d
$3M
TVL
Risk
D
Protocol
Yearn
Chain
Ethereum