Introduction

An introduction to Lybra Finance, Interest-Bearing Stablecoins and Our Mission

Lybra Finance Protocol is a cutting-edge decentralized platform designed to bring stability to the volatile world of cryptocurrency. It primarily operates on Liquid Staking Tokens (LSTs), with ETH and other supported ETH proof-of-stake LSTs as its main components.

A Revolution in the Stablecoin Landscape: An Introduction to eUSD and peUSD

Lybra's primary mission is to create an interest-bearing stablecoin, known as eUSD, which is secure, decentralized and delivers real yield to its holders. This is achieved through the protocol's innovative structure which allows users to mint eUSD by depositing their ETH and other supported LSTs as collateral.

In addition to eUSD, Lybra V2 also introduces an Omnichain version of eUSD, called peUSD (pegged eUSD), which represents the underlying DeFi-utility of eUSD, unlocking wider utility for DeFi applications. Both eUSD and peUSD can be converted at a ratio of 1:1 through the protocol.

eUSD, an over-collateralized asset, offers users much-needed stability in the volatile cryptocurrency market. Meanwhile, peUSD provides users the confidence for transacting in DeFi, with its wide-ranging use cases.

An Innovative Approach to DeFi Yield Generation

One unique aspect of Lybra Protocol is the opportunity it provides for users to generate a steady income through real yield. By depositing ETH or rebase LSTs and minting eUSD against these assets, users can expect to earn approximately 8% on their eUSD holdings. This income is drawn from the Liquid Staking Token income generated by the deposited collateral. The income is converted to eUSD through the protocol and then distributed to eUSD holders. Meanwhile, the introduction of peUSD allows users to continue earning yield on their eUSD even as they are spending it.

Expanding Support for Collateral Assets with Lybra V2

Lybra V2 is designed to support a wider range of LSTs as collateral, offering more flexibility and choice to users and borrowers of eUSD. It also provides further autonomy to the Lybra Finance DAO. In accordance with the results of any DAO proposal and vote, the Lybra Contract Admin can add or remove supported assets in accordance with outcome of any governance voting. This degree of adaptability ensures that Lybra continues to stay at the forefront of the evolving DeFi landscape and ensures the safety and stability of the protocol is kept as the highest priority.