Liquity USD (LUSD) stablecoin analytics
Answer First
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)...
Is LUSD safe?
LUSD holds a B+ Safety Score grade (75/100) in Pharos's latest published rating — a safe-tier grade, so Pharos assesses it as overall safe, though no stablecoin is entirely risk-free. 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.
Static Profile
Static stablecoin profile
Liquity USD (LUSD) static profile: governance model Decentralized (DeFi); backing model Crypto-Collateralized; peg US Dollar.
AI summary / Updated Sep 7, 2026
LUSD remains the philosophical standard for decentralized stablecoins: ETH-only collateral, immutable contracts, no admin keys, no governance, no upstream dependencies. The design earns near-perfect marks on the exit and economic-control pillars, while the same ETH-only purity keeps backing a notch lower and holds the overall grade at N/A, short of what its reputation implies. The permissionless redemption backstop is the load-bearing piece, providing a hard floor at $1 by letting anyone swap LUSD for $1 of ETH...
AI summary · drafted by claude-fable-5-1 · facts as of Sep 7, 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.
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 Sep 7, 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)...
Is LUSD safe?
LUSD holds a B+ Safety Score grade (75/100) in Pharos's latest published rating — a safe-tier grade, so Pharos assesses it as overall safe, though no stablecoin is entirely risk-free. 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.
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.
