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Liquity's LUSD emerges as a growing force on Arbitrum

Liquity's LUSD emerges as a growing force on Arbitrum


April 24, 2023

Four months ago, LUSD stepped up to answer the call of the knights of Camelot DEX, giving it a seat at the roundtable. This brought about the introduction of the most robust and decentralized stablecoin on Arbitrum, the second Ethereum L2 scaling solution to welcome it after Optimism.

LUSD’s unmatched resilience stems from the fact that it is the only stablecoin of this scale powered by immutable contracts: no modification can ever be made, neither to the Liquity protocol nor to the LUSD contract, ever: it’s technically impossible. You can read more on that in the User Docs

While Optimism is still the main layer 2 for LUSD, with 5M+ LUSD on the network, mostly deposited into DEXes and bridging services, LUSD on Arbitrum is growing at a spectacular rate. This growth is so rapid that a possible flippening could occur in the coming months with Arbitrum becoming LUSD's top l2.

LUSD on Mainnet, Optimism and Arbitrum. 93% LUSD increase on Arbitrum over the last 30 days 

Bridging LUSD to Arbitrum

LUSD can easily be bridged from the Ethereum mainnet to Arbitrum in ~15 minutes using the official bridge.

If you don’t see LUSD in the list of tokens available to transfer, you can input its Ethereum mainnet contract address directly:


Once you sign the mainnet transaction, you need to wait about 15 minutes for your funds to arrive. The bridge UI will update you on the completion of the process. If this is the first time you are bridging assets to Arbitrum, make sure to bridge enough ETH for gas too. Withdrawing (bridging back) takes ~7 days. 

The contract address for LUSD on Arbitrum is:
The contract address for LQTY on Arbitrum is: 

You can always find Liquity-related contract addresses and more in the Technical Resources section of the User Docs. 

Fast withdrawal with Stargate

For a fast withdrawal, you can use Stargate.  Stargate is a liquidity network with which users and dApps can swap tokens between chains by transferring their tokens to a pool and receiving tokens from the pool on the destination chain. Stargate supports LUSD on Optimism as well, which means that users can transfer between all three chains at any given time.

Further, users can also supply LUSD on Stargate to earn STG, the protocol’s governance token.

Stargate liquidity network transfer functionality interface.

What can I do with LUSD & LQTY on Arbitrum?

LUSD and LQTY’s liquidity and usage on Arbitrum are growing by the hour. Currently, you can find LUSD and LQTY on almost half a dozen DEXs, but here are a few. 

  • CamelotDEX is the main liquidity source for LUSD on Arbitrum, with an LUSD/USDC pool. Further, there is also an LQTY/ETH pool where liquidity providers can.
  • Ramses Exchange is the main source of LQTY liquidity on the network with a LQTY/WETH pair.

Further, you can find LUSD and LQTY on the following protocols:

  • Uniswap
  • Maverick
  • Sterling
  • Solid Lizard
  • and the newest addition Auragi. More to come in the near future. 

Is there one place where I can see everything?

Indeed, there is! To get the best idea of where to get yield on Arbitrum, make sure to check out this Dune Dashboard by 0xMurathan which highlights all the different places where Liquity users can deposit their assets and earn liquidity mining rewards:
Liquity Asset Yields

What’s next for Liquity on Arbitrum?

With the support from the Chainlink community, there is now a LUSD price feed that is available on Arbitrum. This opens doors to LUSD being integrated into many more places, that go far beyond DEXes & AMMs into more advanced integrations like: 

- Lending & money markets where LUSD can be used as collateral.

- Perp / Options where trades & vaults can be settled through LUSD.

Useful links: