---
title: "Liquity USD (LUSD) Stablecoin Analytics"
canonical: "https://pharos.watch/stablecoin/lusd-liquity/"
description: "Build-time stablecoin profile for Liquity USD (LUSD). Live price, supply, peg, liquidity, and flow data are served by the Pharos API."
dateModified: "2026-06-03"
---



# Liquity USD (LUSD)

**Peg:** US Dollar

**Backing:** Crypto-Collateralized

**Governance:** Decentralized (DeFi)

**Status:** active

## Overview

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 {{term:redemption}}redemption{{/term}} backstop is the load-bearing piece, providing a hard floor at $1 by letting anyone swap LUSD for $1 of ETH from the riskiest Trove in exchange for 50 bps. The hundreds of recorded sub-peg blips reveal the trade-off of purity rather than weakness: ETH-only backing at 110% minimum pushes borrowers to hold safety margins, producing persistent above-peg drift, and every ETH crash tests the Stability Pool's absorption capacity in real time. Supply keeps slowly bleeding, the fate of a v1 protocol overshadowed by its own successor BOLD, which added multi-collateral support and user-set interest rates. LUSD is increasingly a monument rather than a market participant — the stablecoin that proved decentralization works and then watched the market choose convenience anyway.

## 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

## Contracts

| Chain | Address | Decimals |
| --- | --- | --- |
| ethereum | `0x5f98805a4e8be255a32880fdec7f6728c6568ba0` | 18 |
| optimism | `0xc40f949f8a4e094d1b49a23ea9241d289b7b2819` | 18 |
| arbitrum | `0x93b346b6bc2548da6a1e7d98e9a421b42541425b` | 18 |
| zksync | `0x503234f203fc7eb888eec8513210612a43cf6115` | 18 |
| base | `0x368181499736d0c0cc614dbb145e2ec1ac86b8c6` | 18 |
| polygon | `0x23001f892c0c82b79303edc9b9033cd190bb21c7` | 18 |

## Live Data

Real-time price, supply, peg score, liquidity, and flow data live at https://api.pharos.watch/api/stablecoin/lusd-liquity.