LUSD (Liquity) is the purest decentralized stablecoin design. Fully immutable smart contracts, ETH-only collateral, zero governance. Withstood every stress test since 2021 launch. For users who prioritize immutability and censorship-resistance above all, LUSD is the answer.
What LUSD is
LUSD is minted by depositing ETH as collateral into Liquity's "Troves" (CDPs). Minimum collateralization: 110% (much lower than Sky's DAI requirement). One-time issuance fee, zero recurring borrow interest.
Immutability
Liquity has NO governance. NO admin keys. NO upgrade mechanisms. What launched in 2021 is what runs today — no protocol team can change the rules, freeze addresses, or upgrade contracts. This is the purest "code is law" stablecoin in DeFi.
Trade-offs
- ETH-only collateral limits mainstream growth vs multi-collateral DAI
- No native yield on LUSD (unlike DAI's DSR)
- Circulation stays small (~$100M) vs bigger stables
Verdict
LUSD is the purest immutable stablecoin in DeFi. No governance, no admin keys, no upgrade risk. For maximum decentralization purists, LUSD is the only option that fully qualifies.