USDL

Lagrange's initial option is to peg the USDL to the USDC (thus establishing its standard as a USD value follower). Pegging to the USDC as a monetary standard will ensure that USDL will enjoy the stability that is based on the trading value of the USD and its major position worldwide as a global standard for every monetary system. However, to ensure the stability of the USDL as the monetary standard that underlies the Lagrange DAPP and supports multi-currency exchanges, the dependence on USDC as a single Stablecoin suggests exposure to potential value changes in USDC(though to-date USDC experienced only marginal and minimal volatility levels). To ensure the stability of USDL, the next stage of the project will include issuing a currency basket Stablecoin.

So what does that mean?

It means that instead of being pegged to one stablecoin, USDL will be pegged to a basket of multiple stablecoins such as: USDC, UST, USDT, TUSD. This will make sure that one of the 4 failings won’t drop the price of USDL because the majority is still worth $1. Using this model, we will peg token prices to it and create cross currency pairs.