Summary
Should the community choose to integrate USD1 on Euler Yield, Gauntlet recommends the following parameters:
| Asset | Supply Cap | Borrow Cap |
|---|---|---|
| USD1 | 10M | 9M |
| Market | Asset | Base Rate | Kink (%) | Rate @ Kink | Rate @ 100% (Max) |
|---|---|---|---|---|---|
| Euler Yield | USD1 | 5% | 90% | 10% | 20% |
USD1 Overview
USD1 is a U.S. dollar–backed stablecoin launched by World Liberty Financial, Inc. (WLFI), with issuance, custody, and redemption infrastructure provided by BitGo. The token is designed to maintain a 1:1 peg to the U.S. dollar, supported by a reserve portfolio consisting of short-term U.S. Treasuries, U.S. dollar deposits, and other cash equivalents.
USD1 is currently live on the Ethereum and Binance Smart Chain, with plans to expand to additional blockchains. To mint USD1, users must hold a BitGo account, deposit U.S. dollars with the issuer’s banking partner, and receive USD1 tokens directly in their BitGo wallet. Redemption follows the reverse process: USD1 is returned, and the user’s U.S. dollars are sent back.
Reserves are subject to monthly attestations by independent third-party accounting firms, conducted under AICPA standards to verify that the token supply is fully backed.
USD1 is tradable both on centralized and decentralized platforms. Major listings include Binance (since May 2025) and Coinbase (added mid-2025), alongside availability on Uniswap (Ethereum) and PancakeSwap (BNB Chain).
The ecosystem is expanding: in June 2025, WLFI introduced the USD1 Bridge to enable cross-chain transfers, with additional functionality such as lending and in-app swaps on WLFI’s roadmap.
Market Liquidity
Current DEX Liquidity on Ethereum is $16.8M with a $10M swap incurring ~10% slippage.
Gauntlet notes that USD1’s annualized log volatility is 1.56%, making it three times more volatile than USDT. The price volatility of the USD1 token is higher than that of the recently listed stablecoins AUSD (1.16%) and frxUSD (1.03%). Therefore, we recommend conservative loan-to-value (LTV) ratios. Given these observations, we recommend against listing it on Euler Prime.
Caps
| Asset | Supply Cap | Borrow Cap |
|---|---|---|
| USD1 | 10M | 9M |
IRM
| Market | Asset | Base Rate | Kink (%) | Rate @ Kink | Rate @ 100% (Max) |
|---|---|---|---|---|---|
| Euler Yield | USD1 | 5% | 90% | 10% | 20% |
LLTV
| ↓ Collateral/ Debt → | USD1 | PYUSD | RLUSD | rUSD | USDC | USDe | USDT | USDtb | wM | AUSD | frxUSD |
|---|---|---|---|---|---|---|---|---|---|---|---|
| USD1 | 0.92 | 0.92 | 0.92 | 0.92 | 0.92 | 0.92 | 0.92 | 0.92 | 0.92 | 0.92 | |
| sfrxUSD | 0.92 | ||||||||||
| eUSDe | 0.87 | ||||||||||
| PT-cUSDO-20NOV2025 | 0.85 | ||||||||||
| PT-pUSDe-16OCT2025 | 0.84 | ||||||||||
| PT-sUSDE-25SEP2025 | 0.85 | ||||||||||
| PT-tUSDe-25SEP2025 | 0.84 | ||||||||||
| PT-USDe-25SEP2025 | 0.87 | ||||||||||
| PYUSD | 0.90 | ||||||||||
| RLUSD | 0.92 | ||||||||||
| sBUIDL | 0.92 | ||||||||||
| sUSDe | 0.87 | ||||||||||
| syrupUSDC | 0.89 | ||||||||||
| USD0++ | 0.87 | ||||||||||
| USDC | 0.92 | ||||||||||
| USDe | 0.87 | ||||||||||
| USDT | 0.92 | ||||||||||
| USDtb | 0.92 | ||||||||||
| wM | 0.90 | ||||||||||
| AUSD | 0.90 | ||||||||||
| frxUSD | 0.92 |
Oracle
Gauntlet recommends using Chainlink’s USD1/USD Oracle.
Next Steps:
- We welcome community feedback.