Users can borrow the stablecoin LUSD interest-free against their ETH used as collateral. They can thus obtain an ETH-backed loan without any recurring costs. 

In other decentralized borrowing protocols, users pay variable interest rates that accrue for the duration of their loan, which often change unpredictably through governance. When using Liquity, users pay a one-time borrowing fee, determined upfront as a percentage of the drawn amount. This borrowing fee adjusts itself algorithmically and in a fully decentralized manner.