How are USD balances held on Lava?

On Lava, you have a unified USD balance that includes any USD you've borrowed or deposited via bank transfer or stablecoins.

All USD on Lava is backed 1:1 by the equivalent value of US dollar denominated assets held as reserves. The reserves are a combination of US Treasury securities, fiat cash, and other audited stablecoins. Lava’s reserves are held in segregated, bankruptcy-remote accounts with regulated financial institutions. This ensures that the reserves are fully protected and kept separate from the operating funds of our company, the issuer, or its custodians. Even in the unlikely event of bankruptcy, these reserves remain accessible and are safeguarded to ensure full backing of all USD holdings.

Audits and transparency reports will be issued quarterly. These reports include asset balances, details of custodians, and third-party audits that verify the information.

You can deposit and withdraw USD to and from Lava via bank transfer or via USDC on Solana. In the near future, we plan to add support for both USDC and USDT deposits and withdrawals across various networks.