What is VUSD

VUSD is a decentralized, over-collateralized stablecoin issued by the Virtue protocol on IOTA.

It is pegged to the US Dollar and backed by on-chain assets such as $IOTA and $stIOTA, ensuring transparency, capital efficiency, and strong price stability.

Key characteristics of VUSD

• Fully backed by on-chain collateral

• Cannot be under-collateralized

• Trustless, censorship-resistant, and always redeemable via CDP repayment

• Plays a central role in Virtue’s ecosystem (borrowing, liquidations and more)

By minting and using VUSD, users can retain exposure to IOTA ecosystem assets while unlocking stablecoin liquidity for additional yield strategies.