# 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.