USDi, issued by the Interest Protocol smart contracts under the governance of Interest Protocol Token (IPT) tokenholders, is a yield-bearing stablecoin pegged 1:1 to the U.S. dollar (USD) and redeemable for USD Coin (USDC). [S1]

USDi tracks the U.S. dollar (USD) at a $1 peg and is exchangeable with USD Coin (USDC) at a 1:1 rate. [S1] Holders accrue interest paid by borrowers, net of a protocol fee, distributed pro rata to all holders. [S2] Distribution occurs through positive rebasing that scales token balances so each USDi remains worth 1 USDC. [S3] The only fee borne is the protocol fee deducted from borrower-paid interest. [S2]

USDi is issued by Interest Protocol, a decentralized Ethereum-based protocol owned and managed by IPT tokenholders rather than a single corporate entity. [S1][S4] The holder's claim is a redemption obligation under which the protocol redeems 1 USDi for 1 USDC on demand. [S5] Minting is permissionless, where anyone can mint USDi by depositing USDC or by borrowing against ERC-20 collateral. [S1] Redemption is onchain and immediate, subject to available USDC reserves. [S5] Tokenholders are protected economically through over-collateralization, a reserve-ratio-driven interest rate model, and a liquidation system. [S6][S5]

USDi is an ERC-20 rebasing token operating on the Ethereum blockchain. [S6][S3] Minting deposits 1 USDC to receive 1 USDi; redemption burns USDi via a withdraw function to receive USDC 1:1, both onchain and immediate. [S3] Collateral valuation uses an OracleMaster aggregator combining Chainlink and Uniswap V3 oracles with a deviation check. [S7]

<Sources
  retrievedAt="2026-06-22"
  items={[
    { id: "S1", url: "https://interestprotocol.io/book/docs/concepts/" },
    { id: "S2", url: "https://interestprotocol.io/book/docs/concepts/Borrowing/InterestRates/" },
    { id: "S3", url: "https://interestprotocol.io/book/docs/concepts/USDi/" },
    { id: "S4", url: "https://interestprotocol.io/book/docs/concepts/Governance/Overview/" },
    { id: "S5", url: "https://interestprotocol.io/book/docs/concepts/Risks/RiskManagement/" },
    { id: "S6", url: "https://interestprotocol.io/book/docs/intro/" },
    { id: "S7", url: "https://interestprotocol.io/book/docs/concepts/Borrowing/OracleSystem/" },
  ]}
/>


Stablecoins

USDi is minted against collateral deposited into Interest Protocol and is redeemable within the protocol.

Interest Protocol is an Ethereum lending protocol that issues USDi, a USD-pegged stablecoin.

Interest Protocol is an Ethereum-based DeFi lending and borrowing protocol.

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Stablecoin issuers

Interest Protocol

Interest Protocol USDi (USDi) is a U.S. dollar stablecoin issued by Interest Protocol.

Each token is redeemable one-for-one for U.S. dollars and is a direct claim on the issuer.

Retail investors can mint and redeem directly with Interest Protocol in USDC, and holders have a contractual right to redeem at par.

USDi has been issued on Ethereum as an ERC-20 token since June 2022.

Interest Protocol USDiUSDi

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