Liquity USD (LUSD) stablecoin analytics
LUSD is Liquity's fully decentralized dollar stablecoin, minted only against ETH at a 110% collateral ratio, with on-chain redemption and immutable code.
Static Profile
Static stablecoin profile
Liquity USD (LUSD) static profile: governance model Decentralized (DeFi); backing model Crypto-Collateralized; peg US Dollar.
AI summary / Updated Jun 3, 2026
LUSD remains the philosophical standard for decentralized stablecoins: ETH-only collateral, immutable contracts, no admin keys, no governance, no upstream dependencies — which is what earns it an A overall and a near-perfect read on every structural axis. The permissionless...
AI summary · drafted by claude-opus-4-8 · reviewed by @TokenBrice on Jun 3, 2026 · facts as of Jun 3, 2026
- Collateral
- ETH only; 110% minimum collateralization ratio per Trove (CDP), with a one-time borrowing fee instead of ongoing interest
- Peg Mechanism
- Overcollateralized ETH CDPs (Troves) with three peg mechanisms: (1) hard floor at $1 via direct on-chain redemption of LUSD for $1 of ETH from the riskiest Trove; (2) Stability Pool absorbs liquidations at 110% collateral ratio; (3) algorithmically adjusted borrowing and redemption fees throttle arbitrage volume
- Jurisdiction
- Not disclosed in the static profile.
- Proof Of Reserves
- No proof-of-reserves entry in the static profile.
Snippet Answer
Is LUSD safe?
Pharos does not mark LUSD as absolutely safe. Static metadata says Liquity USD uses a Decentralized (DeFi) governance model and Crypto-Collateralized backing, with live reserve feed configured; the main caveat is that no direct freeze-control signal is recorded. Treat the live peg, liquidity, reserve, dependency, and Safety Score sections below as the current risk read.
Next Actions
Exact bot target: /subscribe dews,depeg,safety lusd-liquity
Source: checked-in StablecoinMeta profile fields. Live price, supply, reserve, liquidity, event, and safety data load in the interactive dossier below; the summary above was last updated Jun 3, 2026.
LUSD quick answers
What is Liquity USD (LUSD)?
LUSD is Liquity's fully decentralized dollar stablecoin, minted only against ETH at a 110% collateral ratio, with on-chain redemption and immutable code. The static profile records its US Dollar peg mechanism as: Overcollateralized ETH CDPs (Troves) with three peg mechanisms: (1) hard floor at $1 via direct on-chain redemption of LUSD for $1 of ETH from the riskiest Trove; (2) Stability Pool absorbs liquidations at 110% collateral ratio; (3)...
What backs LUSD?
Pharos classifies LUSD backing as Crypto-Collateralized. Collateral, per the static profile: ETH only; 110% minimum collateralization ratio per Trove (CDP), with a one-time borrowing fee instead of ongoing interest Reserve evidence: live reserve feed configured.
Can LUSD be frozen or blacklisted?
Based on tracked contract metadata and blacklist coverage, no direct freeze-control signal is recorded. Live freeze and blacklist events for LUSD, when applicable, appear in the dossier below.