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ParyonUSD Review 2026: Liquity V2-Style Stablecoin on Bitcoin Cash

ParyonUSD is a BCH-collateralized stablecoin protocol on Bitcoin Cash that issues PUSD through over-collateralized loans, with a Liquity V2-style design. It is a young, small protocol, so the main takeaway is a clear mechanism with limited track record.

Bitcoin Cash

By the DappsAtlas editorial team · Updated Nov 5, 2026

DappsAtlas score

6.3/10

Mixed

Visit ParyonUSD

Our verdict on ParyonUSD

6.3/10

ParyonUSD suits Bitcoin Cash holders who want to borrow a dollar stablecoin against BCH without selling it, or who want to earn BCH yield from the Stability Pool. Its strengths are a proven design pattern, direct redemption and cheap transactions. The main caveat is size and track record: about $1 million of locked value, a recent V2 launch, a disclosed contract vulnerability and a thin 110% collateral floor. Start small and keep a generous collateral buffer.

Score breakdown

How ParyonUSD scores

Security: 5.5/10
Ease of use: 6.5/10
Fees: 6.0/10
Features: 6.5/10

Scores run from 0 to 10 and are based only on facts we could verify. Where information was missing we mark the score n/a rather than guess.

What is ParyonUSD?

ParyonUSD is a decentralized, over-collateralized stablecoin protocol on Bitcoin Cash. Users lock BCH and borrow PUSD, a CashToken meant to hold a $1 value. The project says PUSD is directly redeemable for the underlying BCH.

The design is based on Liquity V2, with market-driven interest rates, delegated interest management and a Stability Pool that handles liquidations. Stakers in the pool earn interest and a share of liquidation fees. Public reporting indicates an earlier legacy GitHub organisation under the ParityUSD name before the rebrand.

The protocol appears small, with about $1.02 million in total value locked and a listing date of mid-May 2026 in a DeFi tracker. The blog mentions a V2 release and a closed contract vulnerability, which shows active development but also that earlier contracts had issues.

How ParyonUSD works

ParyonUSD is a collateralized debt position (CDP) protocol. A user deposits BCH into a loan and borrows PUSD against it. The loan must stay above a minimum collateral ratio, listed at 110%. A loan key token identifies and manages each loan, and public reporting shows these for V1 loans.

To keep PUSD near $1, the protocol uses two tools. Redemptions let anyone swap PUSD for BCH at the market price, which draws the price back if it slips below $1. Dynamic, market-driven interest rates change the cost of borrowing as demand shifts. The design follows Liquity V2.

If a loan falls below the minimum ratio, it is liquidated. The Stability Pool, funded by users who stake PUSD, absorbs the debt and receives the BCH collateral. In return, stakers earn interest and a share of liquidation fees. The protocol uses an oracle price feed to value BCH.

7 features

Key features

BCH-backed borrowing

Lock BCH as collateral to mint PUSD without selling your coins. The minimum collateral ratio is 110%.

Direct redemption

Holders can redeem PUSD directly for BCH at the current market price, which supports the $1 peg.

Market-driven interest rates

Borrowers pick interest rates set by the market, and can delegate interest management to others.

Stability Pool staking

Stake PUSD to earn BCH yield from interest and a share of liquidation fees while backstopping liquidations.

Built on CashTokens

PUSD is a fungible CashToken on Bitcoin Cash, with low fees, fast transfers and support in many wallets and DEXes.

Published token ID

The site publishes the PUSD token ID so users can check it against impersonation tokens.

Docs and public stats

The site links to documentation, stats, a blog, GitHub, Telegram and X for checking the protocol's state.

Pros and cons

What we like

Clear, familiar mechanism based on Liquity V2: collateralized loans, redemptions, and a stability pool
PUSD is directly redeemable for BCH, which supports the peg
Low transaction costs and fast transfers on Bitcoin Cash
Non-custodial design, with the token published and verifiable via a token ID
Documentation, stats page, GitHub and a development blog are available
A tracker lists two audits for the protocol

Watch out for

Small protocol with roughly $1 million in locked value, so liquidity and stress-tested history are limited
The minimum collateral ratio of 110% leaves little room before liquidation if BCH drops sharply
Depends on an oracle price feed, and a faulty or manipulated feed would affect liquidations and redemptions
The project moved from V1 to V2 and fixed a contract vulnerability, so users should expect ongoing contract changes
Concentrated in a single collateral asset (BCH), with no diversification
Audit details and team identities are not set out on the homepage; the FAQ only poses the audit question

ParyonUSD fees

The homepage does not publish a fixed borrowing fee. Interest rates are market-driven: each borrower sets a rate, or delegates that choice, and rates adjust to market conditions. Stability Pool stakers receive interest and a share of liquidation fees, so those flows come from borrowers and liquidated positions.

Bitcoin Cash network fees are described as virtually free. Any redemption fee, upfront fee or liquidation penalty is not stated on the homepage, so check the documentation and the app's loan screen before opening a position.

Is ParyonUSD safe?

ParyonUSD is non-custodial: you keep control of your BCH through your own wallet and interact with smart contracts on Bitcoin Cash. The main risks are contract bugs, oracle errors, liquidation if BCH falls, and a PUSD depeg. The project's own blog mentions closing a contract vulnerability, which shows that issues have occurred and have been fixed. A tracker lists two audits, but its homepage does not name the auditors.

The team and legal status are not described on the homepage. Because the protocol is small and young, treat it as higher risk, size positions accordingly, and only use the official site and the published token ID to avoid impersonation tokens.

6 steps

How to get started with ParyonUSD

1
Read the documentation and FAQ on the official site, and note the published PUSD token ID.
2
Set up a Bitcoin Cash wallet that supports CashTokens and fund it with BCH.
3
Open the app from the official site and connect your wallet.
4
Create a loan by depositing BCH, then choose or delegate an interest rate and borrow PUSD. Keep a healthy buffer above the 110% minimum.
5
Optionally stake PUSD in the Stability Pool to earn BCH yield, or hold or trade PUSD on a supported DEX.
6
Monitor your collateral ratio and repay the loan to reclaim your BCH.

Open ParyonUSD

Who ParyonUSD is for

ParyonUSD is for BCH holders who want liquidity without selling, for users comfortable managing a collateral ratio, and for those who want to earn BCH yield by staking PUSD. It is less suitable for anyone who wants a long-established stablecoin or who cannot monitor liquidation risk.

ParyonUSD FAQs

What is ParyonUSD?

ParyonUSD is a decentralized stablecoin protocol on Bitcoin Cash. Users lock BCH as collateral and borrow PUSD, a fungible CashToken designed to track $1. The protocol builds on Liquity V2.

How much can I borrow against my BCH?

The homepage lists a minimum collateral ratio of 110% with BCH as the only collateral. Interest rates are market-driven, and borrowers can delegate interest-rate management. Staying well above the minimum reduces liquidation risk.

How does ParyonUSD keep its peg?

PUSD is meant to stay near $1 through redemptions and dynamic interest rates. Anyone can redeem PUSD for BCH at the current market price, which gives the token a floor. Borrowers set or delegate interest rates, so rates respond to market demand.

How do I earn yield with PUSD?

You can stake PUSD in the Stability Pool. Stakers earn BCH-denominated yield from interest plus a share of liquidation fees. The pool also absorbs liquidated loans, so stakers carry some liquidation-related risk.

How can I verify the real PUSD token?

Verify the token ID against the one published on the official site before sending or trading. The homepage warns about impersonation scams and lists the PUSD CashToken category ID. Public reporting also show separate loan key tokens for V1 loans, which are not PUSD itself.

Has ParyonUSD been audited?

The protocol has no token of its own listed as a governance token in the tracking data; PUSD is the stablecoin. Two audits are listed by a DeFi tracker, but its homepage does not give the auditors or findings, so read the documentation before depositing.

Is ParyonUSD safe to use?

Yes, though the risk is real. Over-collateralized loans can be liquidated if BCH falls and your collateral ratio nears 110%. Smart-contract, oracle and peg risks also apply, and the protocol is small and new.

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