# RUSD Overview RUSD is an immutable $1 stablecoin backed by ETH only. It uses principles of RAI and Liquity and should have the best long-term market price stability of any decentralized stablecoin so far. # Improved Market Price stability RUSD used a floating redemption value to target a RUSD market price of $1. The market price has an upper bound of $1.10 due to a minimum c-ratio of 110%. The low c-ratio is possible with a Liquity-style pool used for liquidations. The market price will have a tight lower bound due to direct redemptions of RUSD for $1 worth of ETH. This market price feedback controller should create more stable market prices than Liquity V1. No prolonged market price deviations from $1 will occur. Another way to think about it: Liquity has a fixed redemption value and a floating market price. RUSD has a floating redemption value and targets a fixed market price. # System Pool: Liquidation and Redemption Pool The System Pool will be built on top of Uniswap V4 RUSD/ETH pool and make novel use of hooks. Stakers will stake RUSD/ETH that can be used for liquidations and redemptions, but also used for swap liquidity. Stakers will have 5 sources of revenue. -loan fees -redemption fees -liquidation fees -swap fees -token emissions # Immutable The protocol will be ossified from day 1. The protocol will use kickbate rates to compensate decentralized frontends. RUSD will use a median of existing ETH/USD oracles. # Tokenomics The only power the governance token will have is to turn on a fee switch, diverting a portion of System Pool fees to token holders. Emissions schedule is TBD.