contributor@Llamaxyzgovernance.aave.com
↑Llama Month 9 Update: Asset Onboardings and Cap Increases
LUSD added as a borrowable stablecoin on Arbitrum Aave V3 to diversify stable asset options and drive borrowing activity in the ecosystem.
Overview
Liquity USD(LUSD)
Token Price$1
24h Change+0.097%
All Time HighApr 5, 2021$1.16
All Time LowJan 27, 2022$0.9
Key Metrics
Market Cap$28.62m
Fully Diluted Valuation$28.62m
Circ. Supply28.51m LUSD
Volume 24h$63,573
CEX Volume$0
DEX Volume$64,162
Risks
How much debt can be issued against LUSD as collateral across lending protocols.
Maximum possible exposure to LUSD
$137,281
$0 (max additional borrows against LUSD) + $137,281 (bad debt if LUSD was hacked now)
Aave V3
$137,281 at-risk exposure = $137,281 bad debt if hacked + $0 additional borrowable against LUSD
Methodology and limitations
Showing collateral exposure for LUSD on onchain. Max Borrowable uses the backend's liquidity-bounded borrow-capacity metric (`collateralMaxBorrowUsdLiquidity`) for the maximum additional USD debt that can be issued against the asset right now. Bad Debt at $0 is the minimum known bad debt if the collateral asset price goes to zero; null rows are excluded from this total rather than treated as zero, so totals may remain lower bounds.
- These metrics describe lending exposure only and are not a full protocol risk rating.
- This view does not include multisigs, timelocks, audits, oracle incidents, listing discussions, curator reports, or protocol backstops.
- Chain-specific drilldown is exact only when the token resolves to a concrete chain:address.
Show exposure details
Each row is one protocol-chain exposure for LUSD as collateral. Bad debt at $0 totals remain lower bounds when a row is marked partial.
Protocol | Chain | |||
|---|---|---|---|---|
LUSD0x5f98805a4e8be255a32880fdec7f6728c6568ba0 | $0 | $137,279 | ||
LUSD0x93b346b6bc2548da6a1e7d98e9a421b42541425b | $0 | $1.53 |
Risk Timeline
Risk-management actions published about LUSD by tracked risk managers and governance contributors, newest first.
contributor@Llamaxyzgovernance.aave.com
↑Llama Month 7 Update
LUSD proposed for addition to Aave V3 on Arbitrum to provide a stablecoin borrowing option, increasing stable asset diversity and revenue potential.
contributor@Llamaxyzgovernance.aave.com
↑Add LUSD to Aave v3 on Arbitrum
LUSD is a decentralized stablecoin backed by ETH through the immutable, governance-free Liquity protocol, providing trustless stability via direct ETH redemption at face value and a 110% minimum collateral ratio that enforces peg through arbitrage. Adding it as borrowable on Arbitrum promotes stablecoin diversity, building on its successful listings on other Aave deployments like Ethereum and Optimism.
risk managerLlama Riskllamarisk.com
→Risk Assessment of Liquity Chicken Bonds
LUSD maintains a hard peg between $1 and $1.10 through redemptions and borrowing mechanics, but faces depeg risk in flash crashes if the Stability Pool lacks funds, potentially leading to debt redistribution and reduced Trove health factors. Investments in B.Protocol for yield expose it to liquidation losses if ETH crashes below 100% collateral ratio, though audited and battle-tested.
contributor@Llamaxyzgovernance.aave.com
↓Aave v2 Ethereum: Disable Borrowing on Volatile Assets
Recent market events and liquidity contraction have heightened volatility risks for LUSD, prompting a disable of borrowing to reduce exposure while allowing deposits.
risk managerGauntletgovernance.aave.com
↓Risk Parameter Recommendations for Aave V2 ETH
Current market volatility combined with Aave V2's lack of advanced risk controls like supply caps and isolation mode heightens exposure risks for LUSD, prompting a temporary freeze to derisk the protocol ahead of V3 migration.
contributor@euler_mabforum.euler.finance
→Switch asset price oracles to Chainlink ahead of Ethereum Merge
Switching the price oracle for LUSD from Uniswap v3 TWAP to Chainlink mitigates the reduced cost of manipulation attacks post-Merge, where PoS enables block proposers to more easily manipulate spot prices without arbitrage risks.
Token Usage
An is required to view token usage.
Yields
Showing 10 of 28 pools
Pool | Project | Chain | 30d APY Chart | ||||||
|---|---|---|---|---|---|---|---|---|---|
| open in new tabRLUSDAave Horizon Market | $104.99m | 4.93% | 1.57% | 3.36% | 4.65% | ||||
| open in new tabUSDC-RLUSD | $78.76m | 5.29% | 0.31% | 4.98% | 5.88% | ||||
| open in new tabRLUSD-USDCCurve | $4.38m | 5.15% | 5.59% | ||||||
| open in new tabRLUSDEVK Vault eRLUSD-7 | $4.16m | 11.30% | 8.30% | 3.00% | 6.72% | ||||
| open in new tabRLUSD-USDC0.01% | $3.13m | 8.68% | 8.68% | 7.87% | |||||
| open in new tabBOLD-LUSDVelodrome | $132,103 | 4.60% | 4.60% | ||||||
| open in new tabBOLD-LUSDstable - 0.05% | $132,043 | 4.96% | 4.96% | 4.96% | |||||
| open in new tabWSOL-RLUSDStandard - 0.25% | $12,524 | 8.90% | 8.90% | 14.57% | |||||
| open in new tabHAI-LUSDstable - 0.05% | $10,170 | 6.54% | 6.54% | 7.11% | |||||
| open in new tabRLUSDEVK Vault eRLUSD-1 | $6,540 | 17.07% | 17.07% | 6.20% |
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Borrow
No borrow routes found using LUSD as collateral.