. Liquity allows borrowing against ETH with zero percent interest rates*, using its algorithmic stablecoin LUSD.
. LUSD maintains its dollar peg through over-collateralization of loans and a redemption mechanism where LUSD can be redeemed for ETH.
. Chicken bonds were introduced to boost liquidity and sustainable yield. Users can deposit LUSD in exchange for bLUSD tokens that accrue over time, with flexibility to withdraw or convert their holdings – known as "chickening out".