What is the Lusd backed by?

I'm curious to know, what exactly is the Lusd cryptocurrency backed by? Is it a commodity, a basket of assets, or perhaps a stablecoin that's anchored to a fiat currency? Understanding the underlying asset or assets that support the value of Lusd would be essential in assessing its potential risks and rewards as an investment. Could you please elaborate on the specifics of its backing and how it contributes to the stability and credibility of this digital asset?