Risk parameters
All parameters are governance-set through the ProtocolRegistry role system. Values below are the launch configuration.
Launch parameters
| Parameter | Value | Setter |
|---|---|---|
| Minimum collateral ratio (MCR) | 150% | setRiskParams |
| Liquidation threshold | 130% | setRiskParams |
| Liquidation bonus | 5% | setRiskParams |
| Stability fee | 2% / year | setStabilityFee |
| Minimum debt | 100 eUSD | setMinDebt |
| Debt ceiling | 250,000 eUSD | setDebtCeiling |
| Mint price max age | 15 minutes | setMintPriceMaxAge |
| Mint pause | Off | setMintPaused (operator lever) |
| Collateral set | eSPY | addCollateral / setCollateralEnabled |
Changing the minimum debt gates new state changes only; existing smaller positions are unaffected and a full close always works.
How eUSD differs from Liquity
Same skeleton: overcollateralized CDPs, sorted-list riskiest-first redemption as the peg floor, hint-based insertion, value-neutral redemption math, keeper liquidations with surplus refund, and a minimum-debt dust guard. The real divergences:
| Area | Liquity v1 | eUSD |
|---|---|---|
| Collateral | ETH, 24/7 pricing | Equity (eSPY), market-hours price rules |
| Liquidations | Stability Pool with redistribution fallback | Direct keeper liquidation, partial liquidation supported |
| Fees | One-time borrow + redemption fees, floating baseRate | Zero mint and redemption fees, fixed 2%/yr stability fee to treasury |
| Redemption payout | $1.00 minus a floating redemption fee | Exactly $1.00 of collateral per eUSD |
| MCR / liquidation | 110% / 110% | 150% / 130% |
| Minimum debt | ~2,000 LUSD | 100 eUSD |
| Governance | Fully immutable | Admin-configured parameters via ProtocolRegistry roles, no Recovery Mode |
| Multi-collateral | ETH only, forever | Per-collateral lists and configs by design |
| Bridging | Plain ERC-20 | ERC-7802 rails with per-bridge rate limits and a global net-bridged-in cap |
The trade-offs are deliberate. Zero-fee redemption gives a cleaner $1.00 floor but no fee damper against redemption cascades. Admin parameters make the system adaptable to equity collateral at the cost of a different trust model than Liquity's immutability; the levers are the debt ceiling, the mint pause, and per-collateral disable, and there is no Recovery Mode.