VUSD, issued by the Virtue Protocol smart contracts under the governance of Virtue tokenholders, is a decentralized, over-collateralized stablecoin pegged to the U.S. dollar (USD) and minted against onchain crypto collateral through a Collateralized Debt Position system [S1][S2][S3].

VUSD targets a 1:1 peg to the U.S. dollar (USD) and is minted by locking collateral, currently $IOTA and $stIOTA, into a smart-contract vault while keeping the Collateral Ratio above a Minimum Collateral Ratio [S1][S3]. The token does not rebase or accrue value; holders earn yield by depositing VUSD into the unified Stability Pool, which absorbs liquidated debt and distributes seized collateral, with 99.3% to depositors and a 0.7% protocol fee [S1][S4]. Borrowing carries a fixed fee and redemptions carry a Redemption Fee [S5][S6].

VUSD is a decentralized, over-collateralized stablecoin issued by the Virtue protocol on IOTA rather than by any single corporate entity [S2]. The holder's claim is a USD-pegged token redeemable through CDP repayment for the underlying onchain collateral, described as trustless and censorship-resistant [S2][S3]. The protocol is permissionless, with no eligibility or jurisdictional gate on minting [S3]. Redemption exchanges VUSD 1:1 by USD value for collateral at oracle-based system prices, restricted at launch to protocol-level actors to protect lower-ratio borrowers, with governance able to widen access later [S5]. Collateral is held non-custodially in onchain vaults backing each position [S3].

VUSD is built on IOTA, with the protocol operating across IOTA Mainnet and IOTA EVM [S3]. Minting deposits collateral and issues VUSD up to the limit set by collateral value and the Minimum Collateral Ratio; positions below it are liquidated by whitelisted executors using Stability Pool VUSD [S3][S4]. Pricing and redemption settlement use an onchain Oracle contract [S5][S7]. The protocol was audited by MoveBit as of July 10, 2025 [S7].

<Sources
  retrievedAt="2026-06-24"
  items={[
    { id: "S1", url: "https://virtue.money" },
    { id: "S2", url: "https://docs.virtue.money/overview/what-is-vusd.md" },
    { id: "S3", url: "https://docs.virtue.money/llms-full.txt" },
    { id: "S4", url: "https://docs.virtue.money/mechanisms/stability-pool-and-liquidations.md" },
    { id: "S5", url: "https://docs.virtue.money/redemption.md" },
    { id: "S6", url: "https://docs.virtue.money/key-features.md" },
    { id: "S7", url: "https://docs.virtue.money/resources/technical-resources.md" },
  ]}
/>


Stablecoins

VUSD tokenholders own and govern the protocol.

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Stablecoin issuers

Virtue USD

Virtue USD (VUSD) is a U.S. dollar stablecoin issued by Virtue USD.

Each token tracks one U.S. dollar and is a collateral-backed contractual exposure rather than a direct claim on the issuer.

Holders can mint and redeem directly with Virtue USD in IOTA and stIOTA.

Virtue USDVUSD