USPD Documentation

USPD is a decentralized, permissionless, and natively yield-bearing stablecoin with on-chain proof of reserves, designed to maintain a stable 1:1 peg with USD through a unique stabilizer mechanism and ETH collateralization.

Core Concepts

1. Decentralized Stability

USPD achieves price stability through a system of decentralized stabilizers rather than relying on centralized reserves. This approach ensures full transparency through on-chain verification. You can see the live system status below, fetched directly from the blockchain.

For a visual, step-by-step explanation of how the system works, check out our interactive guide.

2. Stabilizer System

The stabilizer system consists of:

• NFT-based stabilizer positions
• Automated collateral management
• Dynamic overcollateralization
• Liquidation mechanisms

To dive deeper into the economic incentives and liquidation processes that keep the system stable, read our Economics documentation.

3. Collateralization Model

Every USPD token is backed by a surplus of ETH collateral. The minimum collateralization ratio is 125%, which is the liquidation threshold for the first and most senior stabilizer (ID 1). For each subsequent stabilizer, this threshold decreases by 0.5% (e.g., 124.5% for ID 2, 124% for ID 3). This mechanism incentivizes early participation and ensures robust overcollateralization across the network, protecting the system against market volatility.

Key Features

USPD is designed from the ground up to be a truly decentralized and censorship-resistant stablecoin.

• Self-Issued & Non-Custodial: Users mint USPD by locking their own ETH as collateral. You always maintain control over your assets.
• Non-Freezable: The USPD token contract has no functionality to freeze or seize your funds. What you own is yours.
• Permissionless: Anyone can mint USPD or become a stabilizer without requiring permission from any central entity.
• Independent of Traditional Finance: USPD’s value is backed by on-chain ETH, not by funds held in a bank account or by US treasuries. This insulates it from risks within the traditional banking system.

Get Started with USPD

Ready to experience a truly decentralized stablecoin? You can mint your first USPD now.