Davos Protocol operates through over-collateralized debt positions backed by liquid staking derivatives and other yield-bearing collateral. Revenue is generated through borrowing fees and protocol-level yield optimization on deposited collateral.

The project issues DUSD, an over-collateralized USD-pegged stablecoin deployed across 8 EVM chains including Ethereum, Arbitrum, Base, Polygon, BSC, Optimism, Blast, and Linea. DUSD combines lending and yield-earning mechanics through collateralized debt positions.

Davos Protocol is a decentralized stablecoin issuer built on a dual token model system.