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*Inflation figures shown here reflect circulating (market) inflation and may differ from a coin’s projected, policy (planned) inflation.

What is Liquity-usd?

Liquity USD (LUSD) is a decentralized, USD-pegged stablecoin issued by the Liquity protocol on Ethereum. It is minted against Ethereum collateral through no-interest loans and governed by transparent, on-chain rules, making it a reliable option for DeFi users seeking a collateral-backed, censorship-resistant USD stablecoin.

Why does Liquity-usd have inflation?

Liquity USD inflates because new LUSD is minted whenever users open Troves and borrow against ETH collateral; the supply grows with borrowing demand, which can create inflationary pressure if minted LUSD isn’t offset by redemptions or other mechanisms aimed at preserving the peg.

How is Liquity-usd inflation calculated?

Liquity-usd inflation is calculated by comparing the circulating supply from one year ago to today’s supply. The percentage increase in supply over that period is the annual inflation rate. Learn more in our guide: What is cryptocurrency inflation?.

How is Liquity-usd emission calculated?

Liquity-usd emission refers to how new coins enter circulation, usually through mining or staking rewards. The emission rate depends on the project’s monetary policy and block reward schedule. Learn more in our guide: What is cryptocurrency emission?.

FAQ

We calculate our own inflation and emission data via our algorithms. You can learn more about how we derive our data in the learn page.

We encourage the usage of any data available on this website. You may use it for your personal or educational goals, but do not use it commercially unless you purchase the CryptoInflation API.

We strive to make the data as accurate as possible, but some blockchains have limitations on how precisely supply, inflation, and emission can be calculated. Moreover, the data on this website often has to be averaged and approximated, therefore the data can be a bit off sometimes.

Cryptocurrency emission and inflation aren’t inherently bad—they’re part of how many blockchains secure their networks and incentivize miners or validators. Moderate inflation can help distribute coins fairly and keep the network active, but excessive or poorly managed emission may dilute value and hurt long-term sustainability. You can learn more about how issuance affects price here.