What Is USDeAD?

USDeAD is the stablecoin of the Deaderal Reserve Protocol. It is pegged to $1 USD and backed by ETH, wstETH, and rETH collateral held in user vaults. The protocol's liquidation threshold sits at 115%, with 200% recommended as a safety buffer — making it one of the most conservatively collateralized stablecoins in DeFi. There is no interest rate, no ongoing stability fee, and no centralized entity controlling it. Everything is verifiable on-chain.

How It Works

To mint USDeAD, you deposit ETH (or wstETH/rETH) into a vault at your chosen C-Ratio. A 200% C-Ratio (depositing $2 worth of ETH for every $1 of USDeAD minted) is the recommended safety level, giving you headroom above the 115% liquidation threshold. You can use your minted USDeAD however you like: hold it, spend it, provide liquidity, or park value in a stable asset while your collateral remains locked in your vault.

The Exit Fee Model

Instead of charging interest over time like traditional lending protocols, USDeAD charges a simple 1% exit fee when you repay your loan and retrieve your ETH collateral. That is it. No compounding interest, no surprise liquidations, no hidden costs. You know exactly what you owe from the moment you borrow: 1%, period.

The Revenue Flywheel

Here is where it gets powerful: that 1% exit fee does not disappear. It flows directly to $uDEAD holders as dividend revenue. So every time someone borrows against their ETH and later repays, the exit fee rewards the ecosystem. More borrowers means more fees, more fees means more revenue for $uDEAD holders, more revenue attracts more participants, and the cycle continues.