> For the complete documentation index, see [llms.txt](https://docs.usx.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.usx.finance/minting-and-redeeming/lsr.md).

# LSR

## **What is LSR?**

The LSR ***(Liquid Stability Reserve)*** module allows users to use supported stablecoins including USDC, USDT, and DAI as collaterals to mint USX (or redeem USX for supported stablecoins) at 1:1 rate. The launch of LSR was approved through [DIP027](https://snapshot.org/#/dforcenet.eth/proposal/0x237aa8812670859707f34947b3ec1e8c844cdbc849d275690ef79346660f49e6).

LSR is an improved version of Maker’s PSM ***(Peg Stability Module)***, with all stablecoins collected from LSR being deposited into dForce Lending to earn yield, unlocking a new revenue stream for dForce Treasury.

## **Benefits**

LSR is designed to help USX maintain its dollar peg in a more efficient manner:

* Users can 1: 1 mint USX against supported collateral stablecoins (USDC, USDT, DAI).
* Each collateral stablecoin carries a ‘Minting Cap’ to back the issuance of USX, translating to the total amount of USX that can be minted against each collateral stablecoin. Click [here](https://forum.dforce.network/t/dip027-proposal-to-launch-the-lsr-liquid-stability-reserve-module-for-usx/957) to view the minting cap for each collateral stablecoin supported.
* All stablecoin reserves collected from the LSR module will be automatically deposited into lending protocols (i.e., dForce Lending, Aave, etc) to earn yields, unlocking a new revenue stream for dForce Treasury.

Since most stablecoin reserves will be supplied to lending protocols to earn yield, if the LSR pool doesn’t have a sufficient balance to support redemption, users can still sell USX on supported DEXes.

## **Fees**

We don’t charge any fees for minting USX from other supported stablecoins; however, there will be a 0.1% fee applied for each redemption of USX for other supported stablecoins.