Alto Foundation is developing a decentralized finance protocol centered around DUSD, an omnichain, US dollar-pegged stablecoin. Users can borrow DUSD against a range of crypto assets, including yield-bearing collateral, allowing them to access liquidity without selling their underlying holdings.

The protocol offers isolated lending markets, meaning that each collateral asset has its own separate risk environment. This structure is designed to prevent issues with one asset or market from spreading across the entire protocol. Alto also supports fixed and dynamic borrowing rates, partial liquidations, leveraged yield strategies, and opportunities for users to earn interest by supplying DUSD.

DUSD is designed to remain fully backed by transparent, diversified collateral. Alto aims to combine stablecoin liquidity, lending, and yield generation within a risk-managed DeFi ecosystem, while rewarding users for borrowing, supplying liquidity, and using leveraged positions through its future ALTO token incentive program.