USDQ is Quill's Liquity-v2 fork on Scroll, minted from user-set interest CDPs against wETH, wstETH, weETH, and SCR collateral. The static profile records its US Dollar peg mechanism as: Overcollateralized CDP with user-set interest rates and direct on-chain redemption for underlying collateral; Stability Pools absorb liquidations per collateral market.

As of Nov 8, 2026, Pharos grades USDQ D (41/100) 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 USDQ's reserves as of Oct 27, 2026 as 97.3% wstETH (Lido), 1.5% WETH, 1.2% weETH (Ether.fi), 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. Live freeze and blacklist events for USDQ, when applicable, appear in the live dossier on this page.

Under the route Pharos reviewed on Mar 23, 2026, any holder can redeem USDQ for WETH, WSTETH, WEETH, and 1 other assets. 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.