Liquity USD

Liquity USD (LUSD) ranks #585 by market capitalization, at $26.27M. It belongs to the Stablecoins sector (Fiat-backed Stablecoin). It has traded since Apr 5, 2021, across 100 markets on 18 exchanges, with $4.72K of volume in the last 24 hours. Its all-time high of $5.64 was reached on Jun 7, 2024; the current price is 82.1% below that peak. Its cycle low of $0.0376354 came on Jun 21, 2024.

23.53M LUSD are in circulation. It is available on 5 networks.

Liquity is a non-custodial, immutable, governance-free borrowing protocol. It charges users an issuance fee to take out an interest-free loan in USD stablecoin (LUSD) backed by ETH collateral. Loans can be liquidated if they fall below 110% collateral ratio. Liquidations are supported by a stability pool of deposited LUSD that will be used to pay back the loan in exchange for excess ETH. The protocol also has liquidation mechanisms should the stability pool be empty. Liquidators who initiate liquidations also receive 200 LUSD in gas compensation and 0.5% of the liquidated collateral. LUSD is hard-pegged between $1 and $1.10 through arbitrage opportunities, and soft-pegged to $1 using a Chainlink oracle. LQTY stakers earn the issuance fee in ETH as well as a redemption fee in LUSD when arbitrageurs swap LUSD to maintain the peg.