# USDs & EUROs

### USDs & EUROs mechanics

USDs is TheStandard's USD-pegged stablecoin, central to the protocol's borrowing operations.

**Minting Process:**

1. Users deposit collateral into a Smart Vault. This can be single or multiple collateral types. THere is a [list of collateral types here](/tst/introduction/collateral-types.md). 
2. Based on the collateral value, users can mint USDs with 0% interest but they must always have a minimum of 110% collateral. 
3. A variable minting fee is applied, typically aimed at around 1% of the initial debt. (Sometimes more, sometimes less. The interface will let you know what the current fee is. 
4. This fee is added as debt on top of the requested loan amount.
5. The minting fee is distributed to TST stakers as a reward in the stablecoin.

**Burning Process:**

1. Users repay their USDs debt to the Smart Vault.
2. The repaid USDs are burned, removing them from circulation.
3. Once the debt is fully repaid, users can fully withdraw their collateral. (In the mean time users can still trade their collateral and earn a yield from it.)

The variable minting fee serves as a mechanism to control USDs supply when needed. By adjusting this fee, the protocol can influence borrowing demand and, consequently, the USDs supply.

**Use Cases for USDs:**

1. Within the Protocol:
   * Borrowing 
   * Liquidity provision in DEX pools
   * Collateral for other DeFi protocols
2. Outside the Protocol:
   * Stable store of value
   * Trading pair on various exchanges
   * Payment method in the broader crypto ecosystem


---

# Agent Instructions: 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.thestandard.io/tst/introduction/usds-and-euros.md?ask=<question>
```

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.