alUSD is Alchemix's self-repaying CDP stablecoin; V3 uses USDC-denominated MYT collateral, and the Transmuter settles vested alUSD into MYT. The static profile records its US Dollar peg mechanism as: Self-repaying loans and fixed-term transmutation: vested alUSD settles at face value into an equivalent value of MYT collateral, subject to bad-debt haircuts, per-chain deposit caps, and strategy liquidity.

As of Oct 24, 2026, Pharos grades alUSD F (31/100) on its Safety Score. Pharos's reviews record that admin controls such as a pause or an upgradeable contract exist, though no power to freeze a specific holder was found, and any holder can use its reviewed redemption route. That is a low-band grade, which flags significant structural risk. The grade moves as reserve, redemption, peg and control evidence changes; the live Safety Score on this page shows the current reading.

Pharos records alUSD's reserves as of Jul 27, 2026 as 80.2% DAI yield-token collateral, 15.9% USDC yield-token collateral, 3.5% FRAX yield-token collateral, and 1 smaller holding. Reserve evidence: live reserve feed configured. Pharos classifies the backing as Crypto-Collateralized.

Based on tracked contract metadata and blacklist coverage, admin controls such as a global pause or an upgradeable contract are recorded, but the review found no active power to freeze or seize a specific holder's balance on material deployments.

Under the route Pharos reviewed on Mar 23, 2026, any holder can redeem alUSD for DAI. Settlement takes multiple days. The fee is variable or not fully published. Whether a given holder qualifies is set by the route's own terms, not by this summary.