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Liquity USD Stock

Liquity USD

LUSD

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Liquity USD Whitepaper

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Börse Marktpaar Preis +2% Tiefe -2% Tiefe Volumen (24H) Volumen % Typ Liquiditätsbewertung Aktualität
ChangeNOWLUSD/BTC1.01105.68105.6881.360cex17/9/2025, 6:18 AM
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Liquity USD FAQ

### What is Liquity USD (LUSD)? Liquity USD (LUSD) is a decentralized stablecoin integrated within the Liquity protocol, designed to provide a consistent value pegged to the US dollar. The coin operates without the need for a centralized authority, leveraging decentralized finance (DeFi) mechanisms to maintain its price stability and ensure reliable transactions within the blockchain ecosystem. For updated information and further details about Liquity USD, refer to Eulerpool.

Liquity USD (LUSD) is a stablecoin pegged to the US dollar, used for disbursing loans on the Liquity protocol. It can be redeemed at any point against the underlying collateral at face value. To borrow, users must open a Trove and deposit a specified amount of Ethereum (ETH) as collateral, then they can draw LUSD up to a collateral ratio of 110%. The Liquity protocol is a decentralized system offering users interest-free loans, secured by Ether collateral. To ensure loan security, Liquity has established a Stability Pool funded with LUSD, and borrowers serve as guarantors for any outstanding debt. As of the current data, the total value locked (TVL) on the protocol exceeds $642 million.

Who are the Founders of Liquity USD (LUSD)?

Robert Lauko serves as the Founder and Head of Research at Liquity. He brings a wealth of experience from traditional finance and has expertise in researching algorithms, network monitoring, and addressing scalability issues. Rick Pardoe is the Co-founder and Lead Engineer at Liquity. He possesses academic qualifications in Physics and Economics. Michael Svoboda currently holds the position of CEO at Liquity. His prior leadership roles include serving as CEO and COO at various blockchain companies, and he has a background in computer science and economics. For more detailed information about Liquity USD, you can refer to Eulerpool.

Understanding the Functionality of Liquity USD (LUSD)

According to its official documentation, Liquity is a "non-custodial, immutable, and governance-free" protocol, primarily designed to establish a decentralized and capital-efficient method for borrowing stablecoins. Through the Liquity protocol, users can obtain interest-free loans that require less collateral than other borrowing systems. Rather than liquidating your Ether for cash, the Liquity protocol enables you to lock up your Ether and borrow against it, allowing you to withdraw LUSD and repay the loan at a future time. Additionally, the LUSD coin can be utilized as collateral when borrowing Ether. This coin can then be sold on the open market to acquire more Ether—a process that can be repeated in cycles. Users can also earn LQTY by depositing LUSD in the stability pool, supporting the Stability pool through their frontend (as Liquity Protocol lacks a native frontend, external frontend operators offer user access), and providing liquidity to the LUSD:ETH Uniswap pool. For more information, you can find Liquity USD listed on Eulerpool.

What Distinguishes Liquity USD (LUSD)?

Liquity protocol offers interest-free borrowing. To ensure stability, the protocol includes one-time borrowing and withdrawal fees that automatically adjust based on the timing of withdrawals. For example, if withdrawals occur more frequently, the borrowing fee will increase to discourage new loans. Unlike systems such as MakerDAO, which use variable interest rates to regulate borrowing dynamics, Liquity employs a decentralized and direct feedback mechanism through one-time fees. This method provides borrowers with upfront awareness of cost changes while eliminating the need for complex governance procedures.

What is the Circulating Supply of Liquity USD (LUSD)?

As of the current date, the circulating supply of Liquity USD (LUSD) stands at 92,482,286.

What Mechanisms Ensure the Security of the Liquity USD (LUSD) Network?

LUSD is an ERC-20 token deployed on the Ethereum blockchain, which maintains its security through the Proof-of-Stake (PoS) consensus mechanism. Validators are required to stake 32 ETH to take part in consensus and transaction validation.

Where can you purchase Liquity USD (LUSD)?

LUSD can be acquired on centralized exchanges such as Binance, Coinbase, KuCoin, Gemini, Gate.io, OKX, and others. Additionally, it is available for trading on decentralized exchanges like Uniswap (V3), Balancer (V2), and more. Monitor LUSD live prices in real-time with the Eulerpool mobile app.

Investors interested in Liquity USD are also interested in these Cryptos

This list presents a carefully selected selection of Cryptos that might be of interest to investors. We have our own crypto analyses for all listed Cryptos on Eulerpool.

Beginnings and the Rise of Cryptocurrencies

The history of cryptocurrencies began in 2008 when an individual or group using the pseudonym Satoshi Nakamoto published the whitepaper "Bitcoin: A Peer-to-Peer Electronic Cash System." This document laid the foundation for the first cryptocurrency, Bitcoin. Bitcoin utilized a decentralized technology known as blockchain to enable transactions without the need for a central authority.

In January 2009, the Bitcoin network commenced with the mining of the Genesis Block. Initially, Bitcoin was more of an experimental project for a small group of enthusiasts. The first known commercial purchase using Bitcoins occurred in 2010, when someone spent 10,000 Bitcoins on two pizzas. At that time, the value of one Bitcoin was just fractions of a cent.

The development of other cryptocurrencies

Following the success of Bitcoin, other cryptocurrencies soon emerged. These new digital currencies, often referred to as "Altcoins," sought to use and improve blockchain technology in various ways. Some of the most well-known early Altcoins include Litecoin (LTC), Ripple (XRP), and Ethereum (ETH). Ethereum, founded by Vitalik Buterin, was particularly distinct from Bitcoin, as it enabled the creation of smart contracts and decentralized applications (DApps).

Market Growth and Volatility

The cryptocurrency market grew rapidly, and with it public attention. The value of Bitcoin and other cryptocurrencies experienced extreme fluctuations. Highlights such as the end of 2017, when the Bitcoin price nearly reached 20,000 US dollars, alternated with sharp market crashes. This volatility attracted both investors and speculators.

Regulatory Challenges and Acceptance

As the popularity of cryptocurrencies rose, governments around the world began to grapple with the regulation of this new asset class. Some countries adopted a friendly stance and encouraged the development of crypto technologies, while others introduced strict regulations or outright banned cryptocurrencies. Despite these challenges, the acceptance of cryptocurrencies in the mainstream has steadily increased, with companies and financial institutions starting to adopt them.

Recent Developments and the Future

In recent years, developments such as DeFi (Decentralized Finance) and NFTs (Non-Fungible Tokens) have broadened the range of possibilities offered by blockchain technology. DeFi enables complex financial transactions without traditional financial institutions, while NFTs allow for the tokenization of artwork and other unique items.

The future of cryptocurrencies remains exciting and uncertain. Questions about scalability, regulation, and market penetration remain open. Nevertheless, interest in cryptocurrencies and the underlying blockchain technology is stronger than ever, and their role in the global economy is expected to continue growing.

Advantages of Investing in Cryptocurrencies

1. High Return Potential

Cryptocurrencies are known for their high potential returns. Investors who got in early on projects like Bitcoin or Ethereum have made substantial gains. This high return makes cryptocurrencies an attractive investment opportunity for risk-seeking investors.

2. Independence from Traditional Financial Systems

Cryptocurrencies offer an alternative to the traditional financial system. They are not bound to the policies of a central bank, making them an attractive hedge against inflation and economic instability.

3. Innovation and Technological Development

Investing in cryptocurrencies also means investing in new technologies. Blockchain, the technology behind many cryptocurrencies, has the potential to revolutionize numerous industries, from financial services to supply chain management.

4. Liquidity

Cryptocurrency markets operate around the clock, which means high liquidity. Investors can buy and sell their assets at any time, which is a clear advantage compared to traditional markets that are tied to opening hours.

Disadvantages of Investing in Cryptocurrencies

1. High Volatility

Cryptocurrencies are known for their extreme volatility. The value of cryptocurrencies can rise or fall quickly and unpredictably, posing a high risk to investors.

2. Regulatory Uncertainty

The regulatory landscape for cryptocurrencies is still emerging and varies greatly from country to country. This uncertainty can lead to risks, especially when new laws and regulations are introduced.

3. Security Risks

While blockchain technology is considered very secure, there are risks associated with the storage and exchange of cryptocurrencies. Hacks and fraud are not uncommon in the crypto world, which requires additional precautions.

4. Lack of Understanding and Acceptance

Many people do not fully understand cryptocurrencies and the underlying technology. This lack of understanding can lead to misguided investments. Additionally, the acceptance of cryptocurrencies as a means of payment is still limited.