> For the complete documentation index, see [llms.txt](https://docs.monusd.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.monusd.com/what-is-monusd.md). # What is monUSD? MonUSD is a capital-efficient USD stablecoin, backed by both collateralized debt positions (CDPs) and protocol reserves. ### **Why monUSD?** MonUSD represents more than just a stablecoin—it's the cornerstone of a new financial era. Powered by crypto and harnessing the transformative capabilities of digital programmable money, monUSD provides the tools to reshape global finance, making it more accessible, efficient, and inclusive for everyone. MonUSD unlocks seamless global transactions, instant liquidity, and secure, reliable storage of value, effectively bridging traditional finance with the boundless potential of blockchain technology. With monUSD, users and institutions alike can participate in a financial ecosystem that delivers native yields and groundbreaking opportunities through asset tokenization, revolutionizing how assets are owned, transferred, and utilized. In a world where financial systems are often slow, expensive, and exclusive, monUSD aims to democratize access to sophisticated financial instruments previously reserved for the privileged few By removing geographical and economic barriers, monUSD empowers individuals around the globe to actively participate in the digital economy and harness the benefits of decentralized finance. ### **How is monUSD backed?** MonUSD aims to be the stablecoin of choice within the decentralized ecosystem, with deep liquidity across many trading pairs and a stable peg. MonUSD aims to keep a tight and stable peg by means of the Peg Stability Module, contract that stabilizes the monUSD price allowing users to trade it against USDC at a fixed exchange rate. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.monusd.com/what-is-monusd.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.