Stabilis Ecosystem | by ILIS DAO
  • Welcome!
  • Introduction
    • I Like It Stable Ecosystem
      • ILIS DAO
      • Flux
      • STAB Protocol
  • ILIS DAO
    • Using ILIS DAO
      • Membership
      • Incentives
      • Governance
    • Technical Info
      • Components & Manifests
      • Source Code
      • Liquidity Bootstrapping Pools
    • Founders
    • Official documents
  • Flux
    • Using Flux
      • Flux USD (fUSD)
      • Borrowing and Liquidations
      • Earning with Flux
      • Redemptions
    • Technical Info
      • Components & Manifests
      • Source Code
      • Oracle
      • System Parameters
      • API
    • Dangers
    • Whitepaper
  • Video Tutorials
  • STAB Protocol
    • Using STAB Protocol
      • Swap
      • Borrow
      • Manage loans
      • Liquidations
    • Technical Info
      • Components & Manifests
      • Source Code
      • Oracle
      • System Parameters
      • Interest Rate
      • Real 7d APY
    • Dangers
    • Whitepaper
  • Miscellaneous
    • Tokens
      • ILIS DAO
        • ILIS
        • Membership ID
          • Membership ID Unstake Receipt
          • Membership ID Transfer Receipt
        • Incentives ID
          • Incentives ID Unstake Receipt
          • Incentives ID Transfer Receipt
        • Proposal Receipt
      • STAB protocol
        • STAB
        • LPSTAB
        • Loan Receipt
        • Marker Receipt
        • Liquidation Receipt
        • Flash Loan Receipt
    • FAQ
    • Glossary
    • Useful links
    • DISCLAIMER
    • Terms & Conditions
Powered by GitBook
On this page
  • What is Flux USD (fUSD)?
  • Why fUSD instead of other stablecoins?
  • How does fUSD stay pegged?
  1. Flux
  2. Using Flux

Flux USD (fUSD)

What is Flux USD (fUSD)?

fUSD is the 1:1 USD-pegged stablecoin issued by Flux. It is fully decentralized, overcollateralized, and backed only by XRD and LSULP.

Unlike most competitors, fUSD is designed for resilience:

  • Only backed by crypto assets—no real-world assets or centralized custody.

  • Directly redeemable—always convertible in a fast and liquid way.

Why fUSD instead of other stablecoins?

  • fUSD is backed only by the most decentralized assets: XRD and LSULP.

  • It is always redeemable for its underlying assets, meaning it can be swapped 1:1 for the collateral backing it (for a small fee).

  • Flux Reservoirs allow fUSD holders to earn real yield on their deposited fUSD .

  • ILIS DAO support ensures the smart contracts are protected and governed in a decentralized way, and liquidity providers of fUSD are rewarded using protocol generated interest.

How does fUSD stay pegged?

Flux uses a market-driven approach with user-set interest rates to dynamically maintain the peg.

If fUSD trades above $1

  • Borrowers reduce rates to minimize redemption risk.

  • Lower rates make borrowing fUSD less attractive, pushing the price back down.

If fUSD trades below $1

  • Arbitrageurs redeem fUSD for collateral, reducing supply and increasing price.

  • Borrowers face higher redemption risk and raise rates, boosting fUSD demand and deposits.

PreviousUsing FluxNextBorrowing and Liquidations

Last updated 28 days ago