FUSD (The Fedz) - Collateralised USD Stablecoin

2026-07-11

FUSD is the USD-pegged stablecoin issued by The Fedz protocol. It is an over-collateralised stablecoin designed for on-chain use cases including borrowing, trading, and DeFi composability, following the standard CDP model where users lock collateral and borrow FUSD up to a maximum loan-to-value ratio. The protocol aims to provide a permissionless, censorship-resistant USD equivalent.

The peg is maintained through the standard CDP liquidation mechanism: if collateral value drops below the liquidation threshold, the position is automatically closed and collateral is sold to repay the FUSD debt. A stability fee accrues on outstanding FUSD debt at an annualised interest rate. Over-collateralisation provides a buffer that absorbs market volatility without breaking the peg, and the liquidation system ensures the protocol remains solvent even in sharp price drops.

The adapter reads FUSD's ERC-20 totalSupply() on its supported chains. The peg type is peggedUSD. Mint and burn events are tracked from the core Cauldron-style contracts to monitor supply changes alongside the snapshot-based supply read. Adding FUSD contributed to broader coverage of smaller CDP stablecoins outside the well-known protocols: these protocols collectively represent a meaningful share of on-chain credit creation that benefits from standardised tracking on DefiLlama rather than being invisible to researchers and analysts.