Introduction to the Lybra Protocol

What is eUSD? What is peUSD?

eUSD is an overcollateralized, interest-bearing stablecoin, pegged to the US Dollar. It is, backed by an excess of ETH and rebase LSTs as collateral, and issued in a decentralized and unbiased manner. Simply holding eUSD yields a stable income, with an approximate annual percentage yield (APY) of 8%.

In V2, Lybra Protocol introduces peUSD, an OFT (Omnichain Fungible Token) stablecoin derived from eUSD through the Lybra Protocol. Pegged at a 1:1 ratio to eUSD, peUSD functions as the omnichain version of eUSD, unlocking further utility for DeFi applications. peUSD can be minted using eUSD as collateral or by depositing non-rebase LSTs as collateral (such as rETH or WBETH). peUSD does not generate rebase yield itself. Rather, the underlying eUSD or LST used as collateral for minting peUSD continues to generate yield as the peUSD is spent. This is what allows it to function effectively across different chains and DeFi applications.

Beyond minting peUSD using eUSD (and thus the eUSD's underlying collateral itself), users can also mint peUSD by depositing non-rebase or value-accruing LSTs as collateral (such as rETH or WBETH) into non-rebase asset vaults.

The usability of peUSD is further improved through its integration with LayerZero's OFT model, enabling native cross-chain functionality. This integration allows peUSD to operate across different L2's without being limited by liquidity pools and without the need for bridges.

With the introduction of the eUSD stablecoin and peUSD, the Lybra Protocol delivers a comprehensive omnichain, interest-bearing stablecoin solution. It enables users to confidently and securely engage with the DeFi ecosystem and facilitates cross-chain transactions through its integration with LayerZero's OFT model and Omnichain technology.