> 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/use-cases-and-target-users.md).

# Use Cases & Target Users

$USDu is designed to serve as the liquidity layer for the next generation of stablecoins and yield-driven DeFi protocols. It offers flexible capital that is yield-backed, composable, and optimized for trading and liquidity strategies.

#### Use Cases

* **Liquidity for yield-bearing stablecoins**\
  $USDu helps bootstrap and deepen liquidity for emerging yield-bearing stablecoins, allowing them to scale faster with reduced costs.
* **Leverage and recursive lending**\
  Traders and protocols can use $USDu to perform recursive lending strategies and increase capital efficiency on credit-rated lending platforms.
* **Yield arbitrage**\
  DeFi users can borrow or leverage $USDu to capture yield differentials across markets.
* **Collateral in structured products**\
  $USDu can be used as a composable and productive form of collateral in structured products and derivatives.
* **Treasury optimization**\
  DAOs and treasuries can hold $USDu to maintain stable, yield-generating positions that enhance capital efficiency and reduce idle assets.
* **Low-cost borrowing**\
  Traders and protocols can use $USDu to unlock low-cost, yield-supported liquidity for a wide range of DeFi strategies.

#### Target Users

* **DeFi Protocols and Stablecoin Projects**\
  Projects seeking an efficient base asset for liquidity pools, lending markets, and leveraged products.
* **DAOs and Treasuries**\
  DAO operators looking for yield-generating stable positions with risk-adjusted backing.
* **Advanced DeFi Users and Traders**\
  Yield farmers, traders, and DeFi strategists looking to enhance returns through leveraged yield, arbitrage, and liquidity provision.
* **Market Makers**\
  Entities building liquidity on AMMs and CLOBs who want stable, productive inventory for efficient trading.

$USDu delivers productive, composable liquidity that meets the needs of sophisticated DeFi participants, enabling new classes of yield-bearing strategies.