What is Lybra? A newly launched project in the LSDfi niche received a lot of attention from the market as shown by the IDO event sold out after just a few hours. In this article, let’s learn about the Lybra project with HAK Research.
To understand more about Lybra Finance, people can refer to some of the articles below:
- What is Lending & Borrowing? The Essential Puzzle Piece in DeFi
- What is Maker DAO (MKR, DAI)? Overview of Cryptocurrency Maker Knife
Overview of Lybra
What is Lybra?
Lybra basically is a CDP protocol supports LSD holder mint Stablecoin (eUSD) from collateral assets ETH and LSD (Liquid Staking Derivatives). The special feature of Lybra is that the project’s eUSD is Interest Bearing – you get interest when holding.
Specifically, users holding eUSD minted from stETH or ETH will enjoy the staking income from these collateral assets (stETH) converted to eUSD to pay interest.
What is Lybra’s Mechanism of Action?
Mint & Redeem eUSD
Holders of ETH and LSD (currently stETH) deposit their tokens into Lybra Protocol to mint the eUSD stablecoin with a maximum collateral rate of 150% and without incurring any borrowing interest.
For example: Alice deposits 1 ETH into Lybra for 1 ETH = $2000, with Collateral Rate = 150%, Alice can mint up to $2000/150% = $1333.
Along with that, users can Redeem eUSD to reclaim ETH and stETH at any time at the rate of 1 eUSD = $1 stETH. However, users will have to pay a small fee of 0.05% when Redeem. This fee will be used to maintain the Lybra DAO.
eUSD peg holding mechanism
eUSD is kept peg 1:1 with the Dollar through the following 3 mechanisms:
- Overcollateralization: Every 1 eUSD is backed by at least $1.5 USD worth of collateralized stETH. Over Collateralization helps maintain stability by ensuring the value of the underlying collateral is always greater than the value of the eUSD issued. This helps minimize the risk of bankruptcy and provides safety for eUSD Holders.
- Liquidation mechanism: In case the collateral rate drops below 150%, the user’s loan is liquidated in parts. Lybra allows any user holding eUSD to participate in this process or in other words use their eUSD to support the liquidation of the borrower’s stETH and enjoy rewards of up to 10%.
- Difference trading: In case the eUSD depeg < 1 USD, users can buy eUSD at a cheap price and redeem for $1 stETH -> Reduce eUSD supply. On the contrary, if eUSD > 1 USD, users can deposit stETH to mint more eUSD and convert to other stablecoins on the market -> increase eUSD supply Help bring peg back to 1.
Development Roadmap
Q1 2023
- Open source smart contract for testing
- Community development
- Set up social networks and search for Whale adoption
- Testnet on zkSync to bring excitement
- Smart contract audit
Q2 2023
- LBR Public Sale
- Launched on Ethereum
- Community Call
- Cooperate with a reputable auditing company
Q3 2023
- Multi-sig Safe
- Launched on Arbitrum
- Lending Protocols
- Omnichain
- Develop DeFi strategies
- Develop additional functions as requested by the Lybra DAO community.
Besides, Lybra Finance also launched a number of outstanding updates including:
- July 20, 2023: Lybra Finance launched version V2 with many updates on the operating mechanism and Tokenomics model. To understand more about Lybra V2, people can refer to the article Lybra V2: Innovations with the ambition to lead the LSDFi trend.
Core Team
Update…
Investor
Update…
Tokenomics
Overview information about Lybra token
- Token Name: Lybra
- Ticker: LBR
- Blockchain: Ethereum
- Token Standard: ERC-20
- Contract: 0xc98835e792553e505ae46e73a6fd27a23985acca
- Token Type: Utility, Governance
- Total Supply: 100,000,000
- Circulating Supply: Update…
Token Allocation & Release
Mining Pool |
60% |
0% |
0% TGE. Use up within 2 years depending on SM. |
Team |
8.5% |
0% |
Lock for 6 months and pay in installments over 2 years. |
Ecosystem Incentives |
ten% |
2% |
2% TGE, paid in installments over 2 years. |
Protocol Treasury |
ten% |
0% |
0% TGE. Pay in installments over 2 years. |
IDO |
5% |
100% |
Pay it off at TGE. WL bonus in the form of esLBR (0.5% of total supply). |
LP Reserve |
first% |
100% |
Paid off at TGE, used as initial LBR liquidity. |
Advisors |
5% |
0% |
0% TGE. Pay 10% after 1 month of lock-in, the rest in installments over 1 year |
Token Use Cases
LBR is Lybra’s native token that can be used for trading and providing liquidity.
esLBR is obtained through LBR escrow (redeem esLBR –> LBR paid in installments over 30 days). Holding esLBR, users enjoy the following benefits:
- Voting DAO governance
- Allocated service fees from the protocol in the form of esLBR
- Fees and Rewards from collaborative projects as well as users
- Opportunity to invest in other projects in the ecosystem
Exchanges
Currently, you can trade the $LBR token at Uniswap v2
Lybra’s Information Channel
- Website: https://lybra.finance/
- Twitter: https://twitter.com/LybraFinanceLSD
- Discord: https://discord.com/invite/mgyq3PhdJg
Summary
Hope this article has partly helped you understand What is Lybra? It can be said that LSDfi is currently facing a great opportunity for growth in the near future.
In my personal opinion, Lybra is a suitable platform for bullish investors in ETH who can leverage positions through looping (borrow eUSD -> buy ETH -> mortgage eUSD loan -> . ..) because they do not lose interest like when borrowing USDC with Aave. However, because it is a new protocol, we need to observe more about the project’s growth as well as carefully check the audit reports of auditing companies.