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LUSD Stablecoin (Arbitrum)

LUSD

LUSD is an overcollateralized stablecoin issued by the Liquity protocol.

Risk Rating
Best
What is LUSD Stablecoin (Arbitrum)?
Information
Blockchain
  • Arbitrum
Info
  • Asset Type: ERC-20
Key Metrics
Risk Assessment
Best
Asset Strength

LUSD is a low-cap, fully collateralized asset. This asset is exposed to the underlying risks of Liquity and Arbitrum bridge, which are protocols both rated as Best.

LUSD is a stablecoin that trades within 100bps of its peg to USD, making it a somewhat volatile store of value.

Dependencies

LUSD Stablecoin (Arbitrum) has no dependencies.

Asset Tokenomics

LUSD does not have a supply schedule. LUSD on Arbitrum in backed 1:1 by LUSD locked in the Arbitrum bridge protocol on Ethereum. A fraction of the entire LUSD supply is always deposited inside the stability pool. Liquity uses the stability pool as a liquidity reserve to help mitigate liquidity crises in case of black swan events impacting the price of ETH. This also serves as a price stability mechanism as LUSD depositors withdraw their stability deposits and sell in the open market.

Things to know about LUSD
LUSD Pools
Aave USD Lending
1.9%
Yield
$107K
TVL
Risk
A
Protocol
Aave V3
Chain
Arbitrum