Crypto Spotlight: LUSD

Region: Europe
Feb 13, 2024, 10:46:33 AM Published By Wirex Team

What is LUSD?

LUSD is a USD-pegged stablecoin. It is backed by only ETH and always maintains an over-collateralised position.

LUSD is the most crypto-native stablecoin with zero centralised exposure. It has received high ratings from several agencies and is widely adopted by DAO’s.

Who created LUSD?

LUSD can only be minted on Liquity Protocol by depositing ETH as collateral. No entity can create it in any other way. So 100% of the supply is created by its users and backed by the ETH they deposited.

What does LUSD do?

It is a stablecoin, which closely follows the price of the USD. It can be used across DeFi to earn yield, to finance the purchase of real-world assets (cars, houses, paying expenses…) or just used to store value in a stable way.

What makes LUSD unique?

Several things, it is the most resilient and crypto-native stablecoin in existence. It uses only ETH for its backing, the most safe token in existence (except BTC). Nothing else can be used to mint it.

The smart contracts which govern it are immutable, no one or nothing can ever change them. When users mint it they pay no interest, only a one-off fee of 0.50%. It is also the most capital-efficient stablecoin, as you can mint up to 91% of the deposited ETH value.

LUSD is now available to buy, deposit and exchange in the Wirex app!

Ready to get started with the new arrival? Here is everything you can do with LUSD:

  1. Exchange instantly with 150+ other cryptocurrencies.
  2. Deposit from an external wallet.
  3. Spend in real life with the Wirex card and earn up to 8% Cryptoback™ rewards on every purchase!

Buy LUSD now

*The prices of Cryptoassets fluctuate, sometimes dramatically. The price of a Cryptoasset may move up or down, and may become valueless. It is as likely that losses will be incurred rather than profit made as a result of buying and selling Cryptoassets.

*The value of cryptoassets may fluctuate significantly over a short period of time. The volatile and unprecedented fluctuations in price may result in significant losses over a short period of time. Any Cryptoassets may decrease in value or lose all its value due to various factors including discovery of wrongful conduct, market manipulation, change to the nature or properties of the Cryptoasset, governmental or regulatory activity, legislative changes, suspension or cessation of support for a Cryptoassets or other exchanges or service providers, public opinion, or other factors outside of our control. Technical advancements, as well as broader economic and political factors, may cause the value of Cryptoassets to change significantly over a short period of time.

*This is not financial advice. Not intended for UK customers.