Profile
LUSD profile facts
Liquity USD (LUSD) static profile: governance model Decentralized (DeFi); backing model Crypto-Collateralized; peg US Dollar.
- 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.
Source: Pharos registry profile fields. Live price, supply, reserve, liquidity, event, and safety data load in the interactive dossier on this page.
LUSD quick answers
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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) algorithmically adjusted borrowing and redemption fees throttle arbitrage volume.
Is LUSD safe?
As of Oct 25, 2026, Pharos grades LUSD A- (80/100) on its Safety Score. Pharos's reviews record that no direct power to freeze holders was found on its material deployments, and any holder can use its reviewed redemption route. That grade is in the Score's upper band, which does not rule out losses. The grade moves as reserve, redemption, peg and control evidence changes; the live Safety Score on this page shows the current reading.
What backs LUSD?
Pharos records LUSD's reserves in its review of Jul 14, 2026 as 100% ETH. Reserve evidence: live reserve feed configured. Pharos classifies the backing as Crypto-Collateralized.
Can LUSD be frozen or blacklisted?
Based on tracked contract metadata and blacklist coverage, no direct freeze-control path sets the verdict under the reviewed deployment-materiality scope.
How do you redeem LUSD?
Under the route Pharos reviewed on Mar 22, 2026, any holder can redeem LUSD for ETH. Redemption settles atomically on-chain. 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.
