# FAQ

<details>

<summary>What are the RWA reserves for FUSD?</summary>

FUSD is backed by tokenized U.S. Treasury bills and compliant money market funds, which generate its yield. The collateral is held in an overcollateralized structure (with a minimum collateral ratio of 100%), ensuring that every FUSD token in circulation is fully backed by equivalent underlying assets.

</details>

<details>

<summary>What is the mechanism of the FUSDLP?</summary>

FUSDLP is a liquidity pool token composed of a basket of tokenized Real-World Assets (RWAs). Holders can use FUSDLP to mint FUSD or other stablecoins, and can also earn yield by holding FUSDLP.

</details>

<details>

<summary>How is FUSD yield distributed?</summary>

FUSD generates native yield via a reward multiplier, a mechanism similar to the compound interest in traditional bonds. This multiplier compounds programmatically daily (including weekends), fairly accruing earnings at a predetermined rate set by the FUSD issuer. This daily increase directly raises the user's FUSD balance, ensuring a fair and transparent yield distribution.

</details>

<details>

<summary>Which currencies does FUSD support for 1:1 minting?</summary>

FUSD currently supports 1:1 minting against USDT.

</details>


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