USDLR functions very similarly to other fiat-backed stablecoins such as USDC.

There are two types of USDLR users:

Stable Customers

Stable customers are non-US institutions that have accounts with Stable. They can mint USDLR using U.S. Dollars or USDC, and redeem USDLR for U.S. Dollars.

Minting USDLR involves depositing U.S. Dollars or USDC into the USDLR reserve, which is custodied by BitGo, and being issued an equivalent amount of USDLR. A portion of the reserve is held in cash to support redemptions and the rest is invested into assets such as short-term U.S. Treasury bills to generate interest income. U.S. Treasury bills are widely regarded as among the "safest" and most liquid assets.

Redeeming USDLR involves sending USDLR to a smart contract to be burned and receiving an equivalent amount of U.S. Dollars from the reserve.

Stable customers mint/redeem and trade USDLR based on the demand for USDLR on the secondary market (decentralized and centralized exchanges, OTC, etc.). Their trading activities also help to maintain USDLR's peg to the U.S. Dollar as explained in the next page.


Other USDLR users that don't have Stable accounts cannot mint or redeem USDLR directly. They can access USDLR on the secondary market, such as on decentralized exchanges or OTC. Once they have acquired USDLR, they can freely hold, transfer, trade or participate in DeFi protocols.

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