Liquity USD (LUSD) is a crypto-backed US dollar stablecoin issued by Liquity (decentralised). It has about $26.1M in circulation, ranking #98 among the stablecoins CoinScoop tracks, and runs on 5 blockchains.
What is LUSD?
Liquity USD (LUSD) is a crypto-backed US dollar stablecoin issued by Liquity (decentralised). It has about $26.1M in circulation, ranking #98 among the stablecoins CoinScoop tracks, and runs on 5 blockchains.
In the issuer's words: Liquity is a decentralized borrowing protocol that allows you to draw interest-free loans against Ether used as collateral. Loans are paid out in LUSD (a USD pegged stablecoin).
LUSD supply history
LUSD supply fell 1.0% over the past 30 days, to $26.1M. Its peak was $1.56B in May 2021, and supply is 98% below that high.
Is LUSD holding its peg?
LUSD is trading within 0.5% of its target, which is normal for a healthy stablecoin.
Where LUSD lives: supply by blockchain
Supply is concentrated: Ethereum holds 100% of all LUSD. Moving it to another chain means bridging, or a mint and redeem through the issuer.
How LUSD is backed
LUSD is backed by over-collateralised ETH.
Minting and redemption: Using a Liquity frontend, users mint LUSD by depositing ETH as collateral into a Trove. When the loan is repaid to retrieve the collateral, the paid back LUSD is burned.
LUSD risks
A sharp crash in the crypto collateral can outrun liquidations and leave the system under-backed.
Bugs, governance attacks or bad price feeds can drain collateral or trigger wrongful liquidations.
With $26.1M in circulation, exiting a large position may move the price. Redemption may be limited to approved customers.
Copies of a stablecoin moved by third-party bridges depend on those bridges. Prefer the issuer's native contract on each chain.
Rules such as the US GENIUS Act and the EU's MiCA can restrict which stablecoins exchanges list in a given country.
LUSD vs USDT and USDC
Similar crypto-backed stablecoins
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LUSD FAQ
What is LUSD?
Liquity USD (LUSD) is a crypto-backed US dollar stablecoin issued by Liquity (decentralised). It has about $26.1M in circulation, ranking #98 among the stablecoins CoinScoop tracks, and runs on 5 blockchains.
Is LUSD pegged 1:1 to the US dollar?
LUSD targets 1 USD. At the last update it traded at $1.0016, a deviation of +0.16%, which we classify as "on peg".
What backs LUSD?
LUSD is a crypto-backed stablecoin. Over-collateralised ETH.
Which blockchains is LUSD on?
LUSD is live on 5 blockchains. The largest by supply are Ethereum ($26.0M), OP Mainnet ($111K), BSC ($397).
How much LUSD is in circulation?
About $26.1M of LUSD was in circulation at the last update, -1.0% over 30 days. That makes it the #98 stablecoin by supply among those we track.
Does LUSD pay interest?
No. LUSD does not pay yield to holders directly. Any interest earned on its reserves goes to the issuer. Some platforms offer rewards for holding it, but those are paid by the platform, not by LUSD.
Is LUSD safe?
No stablecoin is risk-free. As a crypto-backed design, LUSD's main risks are falls in collateral value that outpace liquidations, smart-contract and oracle failures, and, for hedged designs, negative funding rates or exchange counterparty risk. Its supply is small, so liquidity can be thin. It currently shows "on peg" on our peg monitor. This page is information, not investment advice.
