> For the complete documentation index, see [llms.txt](https://docs.astera.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.astera.fi/asusd/what-is-asusd.md).

# What is asUSD?

asUSD is credit that exists entirely on Ethereum—not a wrapped dollar, not an algorithmic experiment, but actual lending demand tokenized into a stablecoin.

Every asUSD in circulation represents someone paying for capital efficiency:

* Traders leveraging positions at 10-30% APR
* Protocols bootstrapping liquidity
* Users seeking better capital efficiency than traditional lending

Unlike USDC (your dollar in Circle's bank) or DAI (your collateral backing someone's loan), asUSD makes YOU the credit provider—earning yields from actual borrowing demand.

### **The Facilitator Framework**

asUSD emerges from specialized minting engines called Facilitators, each operating within mathematically enforced boundaries:

```
Total asUSD Supply = Sum of all Facilitator Buckets
Each Bucket = Independent strategy with isolated risk
```

**Current Facilitators:**

* **Astera Lend:** Overcollateralized loans (largest capacity)
* **Liquidity AMOs:** Bootstrap protocol liquidity (medium capacity)
* **Arbitrage AMOs:** Maintain peg stability (limited capacity)

Each Facilitator has a "bucket" with:

* **Capacity:** Maximum asUSD it can mint
* **Level:** Current amount minted
* **Available:** Remaining mintable amount

If one Facilitator fails, others continue unaffected. Risk doesn't cascade—it's contained.

### **Why asUSD is Different**

| Stablecoin Type | Dependency       | Risk                           | Yield to Holders |
| --------------- | ---------------- | ------------------------------ | ---------------- |
| **USDC/USDT**   | Banks & auditors | Frozen reserves, bank failures | 0%               |
| **DAI/USDS**    | Governance votes | 3-7 day delays, parameter risk | Limited          |
| **Algorithmic** | Game theory      | Death spirals                  | Unsustainable    |
| **asUSD**       | Math & code      | Isolated, contained            | 10-30%           |

### **The Three Pillars of asUSD**

#### **1. Autonomous Stability**

No governance votes or manual interventions. Interest rates adjust every block based on market conditions. When demand spikes, rates rise. When supply exceeds demand, rates normalize. Pure mathematics, no politics.

#### **2. Sustainable Yield**

10-30% APR from real economic activity:

* Borrowers paying interest
* Arbitrageurs capturing spreads
* Protocols paying for liquidity

Not token emissions. Not ponzinomics. Actual credit demand.

#### **3. Isolated Risk**

Each Facilitator operates independently. Experimental strategies can't contaminate core operations. New collateral types can't endanger existing positions. Risk flows one direction: down.

### **The Credit Layer Vision**

asUSD isn't trying to be another stablecoin. It's building the credit layer for DeFi:

* **For Users:** Earn what banks traditionally captured
* **For Protocols:** Access instant liquidity without dilution
* **For Ethereum:** Prove that on-chain credit beats traditional finance

Every asUSD represents a vote for decentralized credit over banking intermediaries.


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