Liquity USD

Liquity built a dollar with no company, no governance and no off switch. LUSD comes from that protocol, an immutable Ethereum system that lets users borrow against ether at interest-free rates. A borrower locks ETH in a position called a trove and mints LUSD against it at a minimum collateral ratio of 110 percent, among the tightest in DeFi. What anchors the peg is a hard redemption right: any holder can always swap LUSD for a dollar's worth of the underlying ETH collateral directly from the protocol, minus a fee, arbitraging the price back toward one dollar. There is no issuer, no admin key and no ability to freeze balances. Native to Ethereum, LUSD also circulates as a bridged token across Arbitrum, Optimism, Polygon and other chains. Its governance-free, non-custodial design became a reference point for credibly decentralized stablecoins.