Lybra, the Home of all LSTs
Lybra Finance allows users to utilize LSTs as collateral to mint the interest bearing stablecoin, eUSD. Users can deposit either ETH or LSTs, and borrow against it to obtain eUSD, repaying their debt at a later time. If users deposit ETH, it is automatically converted into a rebase LST through the LST Providers' contract. Given that a rebase LST is an LST asset that intrinsically generates interest, employing it as collateral enables the Lybra Protocol to distribute interest back to eUSD holders. Consequently, unlike traditional stablecoins, simply holding eUSD produces a stable income with an annual percentage yield (APY) of approximately 8%. This approach perfectly leverages the liquidity offered by LSTs.
By harnessing the interest-bearing attributes of LSTs, Lybra Finance has pioneered a new asset category that can be advantageous to any DeFi market participant: a stablecoin that inherently provides interest to its holders as real yield.
The revolutionary nature of this offering is substantiated by the impressive metrics associated with Lybra's rapid growth.
In the first 3 months since its launch in April 2023, Lybra Finance has reached a number of impressive milestones:
The Total Value Locked (TVL) of the Protocol reached a new all-time high (ATH) of approximately $340M in July 2023.
Lybra Protocol ranks 27th in TVL across all protocols and 4th in TVL among all Collateralized Debt Position (CDP) protocols.
Analysis of deposits via the Lybra Finance Protocol reveals:
85,785 ETH has been converted to stETH with Lido Finance.
This conversion equates to $160M ETH converted into stETH.
A total of 179,608 stETH has been deposited into the Protocol.
The deposited collateral has been used to mint $171M eUSD.
eUSD ranks 10th among all Stablecoins
A 1.5% service fee applied to all circulating eUSD ($170M) equates to annualised fees of around $1.48M, with $120K generated in fees in the last 30 days
Source: DefiLlama, July 2023
Nevertheless, this is just the beginning. With the forthcoming launch of the V2 platform, Lybra is on track to reveal a wide range of new yield-generating possibilities for your LSTs. Designed to serve as a hub for all LSTs, Lybra Finance stands poised to harness the full range of token options.
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