Lift Dollar (USDL) is a stablecoin designed to provide users access to US dollars while also earning yield. It operates on the Ethereum blockchain and is backed by reserves held in US dollars and cash equivalents.

Overview

Lift Dollar (USDL) is a stablecoin issued by Paxos International, a subsidiary of Paxos Holding, and regulated by the Financial Services Regulatory Authority (FSRA) in Abu Dhabi Global Market (ADGM). It aims to provide a safe way to earn yield on US dollars. USDL is structured to maintain a 1:1 peg with the U.S. dollar, backed by short-term U.S. government securities and cash equivalents. The assets are held remotely from potential bankruptcy situations under the oversight of a prudential regulator.

USDL distributes yield to eligible wallet addresses daily through an Ethereum smart contract, using a mechanism called rebasing. The yield is derived from the returns generated by the reserves, which include US dollar deposits, US Treasuries, and other cash equivalents.

Lift Dollar is not available to residents of the United States and certain other countries due to regulatory considerations. The stablecoin is designed to target individuals and entities globally who may be unbanked or underbanked and lack access to US dollar-based financial services. ^{[1] [2] [3] [4] [12]}

History

Lift Dollar (USDL) stablecoin was launched by Paxos International, a UAE-based entity of Paxos, in June 2024. The launch was aimed at providing access to US dollars with yield for users outside the United States and other restricted jurisdictions. At launch, USDL was particularly focused on Argentina, where it was made available through distribution partners Ripio, Buenbit, and TiendaCrypto.

In October 2024, Lift Dollar expanded its presence by launching on the Arbitrum network, enhancing its accessibility and scalability. This move allows users to benefit from lower transaction fees and faster transaction times, further broadening the reach of USDL. ^{[5] [1] [2] [3]}

Technology

USDL operates as an ERC-20 token on the Ethereum blockchain. The distribution of yield is facilitated by an Ethereum smart contract, which programmatically allocates the yield generated from the stablecoin's reserves to eligible wallet addresses on a daily basis. The reserves backing USDL are held in US dollar deposits, US Treasuries, and other cash equivalents. ^{[1] [2] [4] [11]}