Liquity USD token
Overview
LUSD is the dollar-pegged stablecoin issued by Liquity V1, a decentralised borrowing protocol on Ethereum. Its defining features are interest-free borrowing, a minimum collateral ratio of 110% against ETH as the sole collateral, a Stability Pool that absorbs liquidated debt, a redemption mechanism that lets anyone swap LUSD for the underlying ETH at face value, and an LQTY secondary token. The protocol is immutable and governance-free by design: parameters cannot be changed by a DAO or admin, which is the core reason it is cited as one of DeFi's most censorship-resistant stablecoins. Redemptions are the hard peg mechanism — when LUSD trades below $1, arbitrageurs redeem it for ETH at par, which pushes the price back up. Liquity has since shipped Liquity V2 with a new stablecoin, BOLD, which the team describes as inheriting LUSD's resilience while adding multiple collateral types, user-set interest rates and improved peg dynamics; LUSD and V1 continue to exist alongside it. Liquity V1 launched LUSD as an immutable, governance-free, interest-free borrowing protocol taking only ETH as collateral at a 110% minimum collateral ratio. Liquity later built V2 around the new BOLD stablecoin with multi-collateral support and user-set rates, positioning BOLD as inheriting LUSD's resilience rather than replacing the V1 system outright.
Within the DeFi Intel graph, Liquity USD connects to 17 tracked entities, most strongly to Ethereum, Arbitrum, Polygon.
Relations
Top connections in the DeFi Intel knowledge graph (confidence-weighted, 10 of 17 total).
| Relation | Connected entity | Confidence |
|---|---|---|
deployed_on | Ethereum | 95% |
deployed_on | Arbitrum | 95% |
deployed_on | Polygon | 95% |
deployed_on | Avalanche | 95% |
deployed_on | BSC | 95% |
deployed_on | zkSync Era | 95% |
deployed_on | Scroll | 95% |
deployed_on | Fantom | 95% |
deployed_on | OP Mainnet | 95% |
deployed_on | Ethereum | 95% |
Frequently asked questions
What is Liquity USD?
Liquity USD is a stablecoin tracked in the DeFi Intel knowledge graph. It is connected to 17 other tracked entities, most strongly to Ethereum, Arbitrum, Polygon.
What type of entity is Liquity USD?
Liquity USD is classified as a stablecoin (token) in the DeFi Intel knowledge graph.
What is Liquity USD connected to?
In the DeFi Intel knowledge graph, Liquity USD is linked to 17 other tracked entities, most strongly to Ethereum, Arbitrum, Polygon.
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