LUSD Stablecoin (Arbitrum)

• Arbitrum

• Asset Type: ERC-20

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.

LUSD Stablecoin (Arbitrum) has no dependencies.

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.