# 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. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.virtue.money/overview/what-is-vusd.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.