# Announcing Nerite! The friendly Liquity V2 fork for Arbitrum.

Source: https://www.nerite.org/writing/hello-nerite

## Summary

Nerite has launched as a Liquity V2 fork on Arbitrum under an exclusive license from Liquity AG, and it issues the USND stablecoin. USND is described as yield-bearing, always redeemable for $1.00 worth of backing assets, borrowable at a borrower-set interest rate, streamable via Superfluid, and built natively for Arbitrum. The announcement notes that Liquity V1 and LUSD were rated the #1 safest stablecoin protocol ever by Bluechip, and that Liquity V1 reached over $4.5 billion in TVL. It also states that Nerite has no governance token currently.

## Article

Introducing Nerite: The friendly Liquity V2 fork for Arbitrum.

Nerite has the exclusive license from Liquity AG required to deploy the protocol on @Arbitrum.

TL;DR: The USND stablecoin is issued by the Nerite protocol.

USND is:

Yield-bearing with sustainable sources of yield.

Always redeemable for $1.00-worth of assets backing it.

Can be borrowed at a custom interest-rate set by borrowers.

Is a streamable super-token (via Superfluid integration)

Has tradable CDPs

Is built natively for Arbitrum

Liquity V1 and LUSD have been rated as the #1 safest stablecoin protocol ever by Bluechip because the protocol is immutable and has a redemption mechanism. Arbitrum is rated as the most decentralized Layer-2 network by @l2beat. It’s a match made in heaven.

Liquity V1 was able to achieve over $4.5 Billion USD in TVL from nothing extremely quickly, but it had some issues scaling long term. The Liquity V2 system that Nerite uses improved on the original design by allowing users to choose their own interest rate for borrowing stablecoins, making the stablecoin more sustainably yield bearing, and enabling a more diversified basket of high quality collateral (like rETH and wstETH).

Follow us [@neriteorg](https://x.com/neriteorg) for more information about how Nerite works, its features, and what to expect next.

There is currently no governance token for Nerite. Please be mindful of scams.