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Ethereum

Liquity USD Stability Pool

LUSD

This pool allows you to stake LUSD to earn a proportional share of liquidated ETH collateral. Your yield is generated from high-risk borrowers whose collateral ratios fell below the protocol's maximum and thus had their loans foreclosed. The LUSD is used to pay the borrowers' debts and depositors receive ETH in return, but typically worth more than the foregone LUSD.

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4.9%
Yield
30d APY
A
Risk
APY
Last 90d
Editor's Take
Investment Rationale

This pool acts as a savings account denominated in USD where users lose a pro-rata share of LUSD deposits over time, while gaining a pro-rata share of the liquidated ETH collateral.

Risk Perspective

This pool is rated A due to its solid underlying asset and protocol. However, there is always the risk that ETH prices decline significantly (above the liquidation discount), which would result in a principal loss for users.

Pool Performance

LUSD often trades more than 100bps off its peg to USD but is backstopped by the stability pool which ensures the total LUSD supply always remains collateralized.

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Yield4.9%
30d APY
Base
%
Reward
%
.
TVL
$83.4M
-12.77%
last 30d
Yield
4.9%
APY 30d
Earnings
<$0.1M
Last 30d
Protocol
Liquity
Summary
Risk
Fundamentals
Risk of losing your entire investment due to systemic issues in the underlying chain, protocols, or assets
A
Yield Source
Geometric spirals as the background of the yield source card header
Percentage icon symbol
Your yield consists of liquidated ETH posted as collateral by LUSD borrowers
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There are short-term incentives to encourage more deposits into the pool
Investment Strategy
Asset icon 0
This pool serves as a yield-generating savings account for you to earn yield on your USD stablecoins
Risk Details
Pool Fundamentals
A

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