> ## Documentation Index
> Fetch the complete documentation index at: https://docs.denar.markets/llms.txt
> Use this file to discover all available pages before exploring further.
# dUSD — the Denar dollar
> dUSD is Denar's reserve-backed dollar: minted 1:1 against USDG, always redeemable, with the whole reserve's earnings paid to staked sdUSD.
**dUSD is not live yet.** The contracts are written and tested, but nothing is deployed on-chain and nothing can be minted or staked today. This section documents the design so you can read it before launch — every figure that depends on a deployment (addresses, live parameters, rates) will be published here when the coins are struck.
dUSD is a dollar built the way Denar builds everything: the mechanics enforced by contracts, the risk stated out loud, and nothing promised that the reserve does not actually earn.
The system is **two tokens with one job each**:
| | dUSD | sdUSD |
| ----------- | ------------------------------------- | --------------------------------------------- |
| What it is | A plain, transferable dollar | A staking vault share (ERC-4626) |
| Minted from | USDG, one for one | dUSD, at the vault's share price |
| Pays yield? | **Never** — by design | **All of it** — the reserve's entire earnings |
| Redeemable | 1:1 for USDG at the treasury, anytime | Unstake to dUSD anytime |
| Rebases? | No | No — the share price rises instead |
That split is the engine. Every dUSD in circulation is matched by reserve dollars that earn — in tokenized T-bills, in Denar's own lending markets — but only holders who **opt in by staking** collect. The dollar stays boring and composable; the yield concentrates on sdUSD.
**dUSD is not dnUSDG.** dnUSDG is the share token of the [USDG lending vault](/use/earn) — a claim on a loan book, whose value moves with borrower interest. dUSD is a dollar, pegged and redeemable at one USDG. The names are close because both are Denar-native; the instruments are not.
## Where the yield comes from
The treasury holds the reserve in three places, each documented in [The reserve](/dusd/reserve):
1. **A liquid USDG buffer** — earns nothing, exists so redemptions never wait.
2. **The Denar lending vault** — earns what borrowers across the stock markets pay.
3. **SGOV**, the tokenized 0–3 month US Treasury ETF on Robinhood Chain — earns the T-bill rate through the token's corporate-action multiplier, the same mechanism [the markets already handle](/protocol/corporate-actions).
Earnings above the reserve's retained safety cushion are periodically *harvested*: minted as dUSD against the surplus that backs them and dripped to sdUSD stakers over seven days. The mechanics — and why the drip makes distributions impossible to snipe — are in [Staking](/dusd/staking).
## Why the dollar ships second
dUSD is not late — it is downstream. sdUSD's yield **is** the lending markets' borrower interest (plus the T-bill sleeve), so launching the dollar before the markets have real borrowing demand would mean launching a staking rate with nothing behind it. The order is deliberate:
1. **The markets first** — live since August, operating in public: liquidations, corporate actions, monitoring.
2. **The dollar on top** — minted when its reserve has somewhere productive to work.
Waiting is not idle, either: **[Denar Points](https://www.denar.markets/points) earned in the markets before launch carry priority access to dUSD's first minting window.** Lending and borrowing today is the queue.
## The design in five commitments
1. **One dollar in, one dollar out.** Mint and redemption are 1:1 against USDG at the treasury, not against a pool. The exit does not depend on market depth.
2. **The reserve is valued pessimistically.** A scheduled dividend is never counted before it is paid; a scheduled reverse split is priced the moment it is announced.
3. **Distribution comes after solvency.** A retained equity cushion — sized against the *risky* side of the reserve, not just liabilities — is never paid out.
4. **Operations are bounded.** Reserve rotation is slippage-bounded against Chainlink and rate-limited per day; the redemption buffer has an enforced floor.
5. **Everything pauses for corporate actions.** While SGOV is processing a dividend or split, valuation and harvest wait — exactly as the lending markets do.
## Status and roadmap
| Milestone | Status |
| ------------------------------------------------------- | -------------------------------------------------------------- |
| Contract suite (4 contracts, 63 tests) | Complete — ships verified on-chain, like the 11 live contracts |
| Adversarial review | Two internal multi-reviewer rounds complete, findings fixed |
| Real borrowing demand in the markets (the yield source) | Seed phase — this is the gate |
| Deployment on Robinhood Chain | Follows the above |
| First minting window | Priority access for Denar Points holders |
Follow [@DenarMarkets](https://x.com/DenarMarkets) and the [changelog](/changelog) for launch.