$uniUSD

$uniUSD is a decentralized, overcollateralized stablecoin that remains fully backed, transparent, and native to the Unilend protocol. It is designed to maintain a stable value pegged to the U.S. dollar. Users can mint $uniUSD on demand, provided they stay within minting limits established by UniLend governance. The peg is supported by efficient market mechanisms and robust overcollateralization built into the protocol.

$uniUSD is an ERC-20 token deployed on Unit Zero and functions through a facilitator-based system. Facilitators are smart contracts authorized by UniLend governance, granting them the ability to mint and burn uniUSD tokens within predefined caps. This approach provides scalability and flexibility for future integrations while preserving decentralized oversight of the supply. The primary facilitator is the Unilend market on Unit Zero.

Minting

Users mint $uniUSD by depositing approved collateral assets into Unilend and borrowing $uniUSD against them. The process adheres to standard overcollateralization rules, helping ensure both protocol security and stablecoin stability.

Interacting with $uniUSD through the Unilend Pool Facilitator feels very similar to using any other reserve asset on the protocol, with a couple of important distinctions:

• $uniUSD is minted rather than supplied, so interest rates and minting limits rely on a dedicated interest rate strategy and facilitator-specific caps. Minting is performed via the borrow function in the Unilend market on Unit Zero. The steps are almost identical to borrowing any other asset: first, approve and supply eligible collateral to the Pool to build sufficient collateralization, then borrow $uniUSD up to the maximum allowed by the collateral factor of your deposited assets.

Since $uniUSD is freshly minted and not sourced from existing suppliers, its availability isn’t constrained by liquidity pools. Instead, minting is governed solely by the facilitator cap and collateral requirements.

Liquidation

Positions borrowing $uniUSD follow the same liquidation rules as any other loan on Unilend. If a borrower’s health factor drops below 1 — meaning the value of their debt exceeds the weighted liquidation threshold of their collateral — anyone can initiate liquidation by calling the liquidation function on the Pool contract.

During liquidation, the liquidator repays up to 100% of the outstanding $uniUSD debt and receives an equivalent USD value of the collateral plus a liquidation bonus as a reward.

Contracts

Contract	Address
$uniUSD token