Minting

There are no borrowing (minting) costs or interest charges in the Lybra Protocol. However, the protocol exchanges the LST (Liquidity Staking Tokens) revenue generated by the rebasing LST into eUSD and airdrops it proportionally to eUSD holders, allowing users to make more the longer they borrow (mint/hold).

What is the timeline for repayment?

There is no set payback period for loans issued by Lybra Protocol. As long as you maintain a collateral ratio of at least 150%, you are allowed to keep the loan open and pay off your debt whenever you want.

What is the minimum collateral rate (MCR) and the "recommended" collateral ratio?

The minimum collateral rate (or MCR) is the lowest ratio of loan to collateral that will not trigger a liquidation under normal operations (Normal Mode). This parameter is set to 150% for eUSD and 150% for peUSD on Lybra Protocol at launch, which can be adjusted by Lybra DAO Vote.

i.e., if you have a loan of 10,000 eUSD, you would need at least $15,000 worth of LST as collateral to avoid the risk of being liquidated.

i.e., if you have a loan of 10,000 peUSD, you would need at least $15,000 worth of LST as collateral to avoid the risk of being liquidated.

To keep your funds safe and avoid getting liquidated, it's highly recommended you maintain a collateral rate higher than 200%.

Deposit & Withdrawal

A 0.1% fee will be imposed on withdrawals made within three days of deposit. This measure is in place to prevent short-term deposits and withdrawals designed to exploit the interest from the Rebase LST rebasing.