# cyUSD and Credit Systems

CurveYield 2.0 expands the credit thesis beyond the old scrvUSD/crvUSD product set.

The new focus is yield-bearing collateral: vault shares, yield-bearing LP tokens, liquid locker assets, boosted staking derivatives, and other productive positions that can support borrowing markets when pricing and liquidation paths are robust.

## Current public status

| Component             | Role                                                    | Status label                                                  |
| --------------------- | ------------------------------------------------------- | ------------------------------------------------------------- |
| `cyUSD` token         | CurveYield USD stable liquidity and credit-system token | Live / Deployed where listed in contracts                     |
| cyUSD staking / vault | Staking and compounding route for cyUSD rewards         | Built / Testing until listed as public product infrastructure |
| cyUSD peg keeper      | Peg support for selected liquidity pools                | Market-specific; check contract references                    |
| Credit markets        | Borrowing against approved productive collateral        | Released market by market                                     |

Always check [Product Status](/reference/product-status.md) and [Contracts](/reference/contracts.md) before treating any component as active public infrastructure.

## cyUSD role

cyUSD is the CurveYield USD system.

Its role is to provide or coordinate stable liquidity for approved borrowing markets and earn lending interest from those markets when risk parameters allow.

The cyUSD design space includes:

* collateralized borrowing;
* peg support infrastructure;
* lending-market liquidity;
* peg keepers;
* liquidation protection or soft-liquidation-inspired mechanisms;
* vault and staking integrations;
* treasury-managed stable liquidity.

## Yield-bearing collateral markets

CurveYield credit markets are designed for productive collateral.

A user or vault may hold a yield-bearing asset, borrow against it, and keep the underlying position productive. The borrowed asset can provide liquidity, support hedging, fund another productive route, or increase exposure.

This creates capital-efficiency potential, but it can magnify both gains and losses. The central risk reference is [Risks](/reference/risks.md).

## Integrated systems

CurveYield can integrate several credit frameworks:

### Euler-style markets

Euler-style markets can support isolated lending routes and collateral-specific borrowing.

### Morpho-style markets

Morpho-style infrastructure can support isolated collateral/loan pairs and strategy-specific borrow liquidity.

### f(x)/fxMINT-style systems

f(x)/fxMINT-style systems may be useful where minting, leverage, or yield-bearing stable assets fit the strategy design.

### LlamaLend-style markets

LlamaLend-style isolated markets and soft-liquidation concepts can fit assets where controlled liquidation behavior is important.

### CurveYield cyUSD markets

CurveYield cyUSD markets can supply stable liquidity, collect lending interest, support peg infrastructure, and connect borrowing markets back into CurveYield treasury and revenue systems.

## Market design fields

Each public credit market is described with:

| Field        | Description                                                                 |
| ------------ | --------------------------------------------------------------------------- |
| Collateral   | Asset, chain, vault/pool dependency, and yield source                       |
| Borrow asset | Asset, liquidity source, and interest-rate model                            |
| Oracle       | PPS source, rate provider, primary/fallback oracle, and stale-rate behavior |
| Risk limits  | LTV, liquidation threshold, borrow caps, and route limits                   |
| Liquidation  | Hard liquidation, soft liquidation, or external protection route            |
| Revenue      | Lending interest, fees, treasury participation, and user yield source       |
| Status       | Live, Built / Testing, Designed / Pending, Research, or Suspended           |

## Why this matters

Credit markets allow CurveYield to turn productive assets into more useful capital.

A vault share or LP token does not have to be an idle receipt. It can become collateral, support stablecoin liquidity, increase strategy flexibility, and generate lending interest where risk controls support it.


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