Tokens and Governance
RISKUSD
Non-yielding protocol dollar: mint, redeem, peg behavior, and role in the protocol.
What Is RISKUSD?
RISKUSD is the protocol's non-yielding dollar token. It is minted 1:1 against deposited USDC and backed by on-vault USDC plus conservatively valued deployed capital/custodian value.
Key Properties
| Property | Value |
|---|---|
| Type | ERC-20 on Arbitrum |
| Peg | 1:1 with USDC |
| Yield | None |
| Trading risk | None |
| Supply | Elastic — grows with deposits, shrinks with redemptions |
Minting
Deposit USDC into the RISKUSDVault. Receive RISKUSD at a fixed 1:1 ratio. No fees, no slippage, no rounds.
- Requires USDC approval first
- Available continuously — no deposit windows
- Immediate — RISKUSD appears in your wallet after transaction confirmation
Redeeming
Convert RISKUSD back to USDC:
- Call
RISKUSDVault.redeem(uint256)with the RISKUSD amount - If checks pass, the transaction burns RISKUSD and returns USDC at 1:1
A governance-configurable weekly redemption cap may apply. If a redemption would exceed the cap, it reverts; it does not queue. Redemption may also revert or be blocked by vault liquidity, reserve-ratio checks, unresolved loss or loss-pending conditions, blocklist status, or pause conditions.
Peg Behavior
The RISKUSD:USDC peg is maintained by the mint/redeem mechanism and vault solvency checks. When checks pass, RISKUSDVault.redeem(uint256) returns USDC at the 1:1 rate. The weekly redemption cap enforces bounded outflows by reverting transactions that would exceed the cap.
Role in the Protocol
RISKUSD serves as the intermediate layer between external USDC and the yield vault:
USDC → RISKUSD → atRISKUSD (yield)
USDC ← RISKUSD ← atRISKUSD (exit)
Holding RISKUSD without staking keeps your capital in the protocol without trading exposure. This is useful for depositors who want to participate in FORAGE airdrops without taking trading risk.