I’d like to further vouch for the addition of LUSD. DeFi needs a trust-minimized dollar-pegged coin with trustless collateral (ETH only), and we haven’t had that since sai (single-collateral dai) was wound down. The Liquity team took trustlessness a mile further by excluding all forms of governance from the design and deploying all contracts as non-upgradable. This feat is basically singular across the whole stablecoin space.
Anyone on Compound who values trust minimization must currently settle for dai, which, although less centralized than other supported stablecoins, is still a weak substitute for this role. This is due to dai’s reliance on fiat-backed stablecoins for stability (USDC, USDP), the inclusion of other custodied assets in its collateral portfolio (WBTC, home improvement loans, etc.), a monumental governance overhead, the governance capture implicit in that, increasing intertwining with the legal system, and a degrading level of trust in the decentralized nature of its governance (predicted 5 years ago by its co-founder).
I’ll also add a longer-term view of the stability chart Derrick posted. This one shows LUSD’s price in dai, USDC and USDT on Curve since the genesis of Liquity. (Up-to-date chart here.)
Apart from the early fluctuations and the lasting distortion of the reward program in the first few months, you can see a few off-peg spikes. The “largest” ones (in quotes, since both were under 4%) happened at the end of May and the end of October. In both cases, the peg successfully returned to normal values in a few days, which was a battle-test validation that Liquity’s fully automated peg mechanisms work.