> For the complete documentation index, see [llms.txt](https://usdu.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://usdu.gitbook.io/docs/usdusdu-token.md).

# $USDu Token

$USDu is a yield-collateralized, protocol-minted stablecoin designed to provide deep liquidity for DeFi applications. It is always overcollateralized with yield-bearing assets from verified on-chain lending markets.

#### Token Addresses

<table><thead><tr><th width="193.796875">Chain</th><th width="90.77734375">Ticker</th><th>Address</th></tr></thead><tbody><tr><td>Ethereum Mainnet</td><td>USDU</td><td>0xdde3eC717f220Fc6A29D6a4Be73F91DA5b718e55</td></tr><tr><td></td><td></td><td></td></tr></tbody></table>

#### Key Properties

* **Soft-pegged to USD**\
  $USDu targets a value of approximately 1 USD, backed by productive collateral.
* **Protocol-minted only**\
  Users cannot mint $USDu. The protocol issues $USDu solely against assets in managed vaults on credit-rated lending markets.
* **Yield-backed and overcollateralized**\
  Every $USDu is backed by real income-generating assets. This ensures that the stablecoin is not only stable but also productive.
* **Designed for liquidity**\
  $USDu provides a low-cost borrowing and lending asset for DeFi protocols, enabling strategies such as recursive lending, yield arbitrage, and leveraged trading.
* **Highly composable**\
  With an immutable core and modular governance, $USDu integrates easily with lending markets, AMMs, structured products, and trading protocols.

#### Use Cases

* Liquidity layer for yield-bearing stablecoins
* Base asset for leveraged trading and yield strategies
* Stable borrowing and lending market pair
* Collateral for derivatives and structured products
* Treasury diversification for DAOs and DeFi projects

USDu is positioned as the next-generation infrastructure stablecoin, giving builders and protocols a reliable foundation for capital-efficient, yield-powered DeFi ecosystems.
