# Overview ## Introduction **eUSD** is the native stablecoin of Eden, acting as a decentralized, modular stablecoins protocol with different entities and individuals contributing to its development and adoption. As a result, the documentation refers to different areas of “eUSD” which are worth distinguishing. * **eUSD Protocol**: A decentralized, non-custodial stablecoins protocol implemented for the Ethereum Virtual Machine. * **eUSD Interfaces**: Multiple web interfaces allowing easy interaction with the eUSD Protocol. Those interfaces are ways to interact with the eUSD Protocol. ## **eUSD** eUSD is a capital-efficient, over-collateralized stablecoin minted on Ethereum and natively bridged to Eden, via Hyperlane. The protocol leverages a modular, upgradable smart contract architecture to enable the decentralized issuance of USD-pegged stablecoins backed by onchain collateral. ### **Overview** eUSD is a decentralized stablecoin protocol built on a modular and upgradable architecture. Stablecoins are minted exclusively on Ethereum, ensuring collateral security and composability with the broader DeFi ecosystem, before being bridged to Eden for use within the L2. Unlike traditional yield-bearing stablecoins, eUSD does not feature a savings module. Instead, 90% of the yield generated by backing assets is used to buy back TIA and distribute it as incentives across Eden directly channeling stablecoin revenue into ecosystem growth rather than individual holders. eUSD is licensed under [BUSL-1.1](https://github.com/eden-eusd/stabilizer/blob/main/Parallel_x_Angle___Licensing_agreement_redacted.pdf) & MIT. Once deployed, eUSD will function in perpetuity, provided by the existence of the blockchain and their dependencies. ### **Key Concepts** Stablecoins in eUSD involves: * **Collateralization**: eUSD is backed by an overcollateralized basket of assets held on Ethereum, ensuring solvency and peg stability. * **Depeg Protection**: The protocol automatically adjusts fees and penalties when an asset deviates from its target value. * **Modularity**: The protocol operates through independent minting modules that can be activated or modified over time. * **Open Participation**: Anyone can mint or burn eUSD through the protocol. * **Yield Redistribution**: Rather than accruing yield to stablecoin holders, eUSD redirects 90% of backing yield toward TIA buybacks and Eden incentives, aligning stablecoin growth with the health of the ecosystem. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.eusd.xyz/introduction/overview.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.