Reimao Sure thing! So we evaluated several assets on a range of quantifiable categories like Market Cap, Trading Volume, On-Chain Liquidity, and Volatility in order to assess their relative size, stability, and performance as stablecoins. Additional categories like Decentralization, Utility, Unique Holders, and Smart Contract Age/Permissions were used to separate assets based on censorship-resistance and the benefits that we gain from adding to the Treasury.
Specifically for Liquity, the category that really separated LUSD from other options was Decentralization. Since Liquity is fully governance-minimized, there is no risk of the goal posts being moved on LUSD's backing. This also makes the process of unwinding positions simpler, since we can redeem LUSD for the underlying ETH for a small redemption fee.