Protocol Revenues

Revenue and Fees

Lybra Protocol Revenue Sources

The protocol's primary sources of revenue are derived from service fees related to eUSD and borrowing/minting fees associated with peUSD.

eUSD Service Fee

Minting and repaying eUSD does not involve any fees. However, Lybra Protocol levies an annual service fee of 1.5% on the total amount of eUSD in circulation. This fee accrues every second based on the actual eUSD circulation and is converted to USDC or peUSD as previously referenced. The collected fee is then distributed to esLBR holders.

For instance, with an eUSD total circulation of $1B, the service fee collected over a year would equate to 15M peUSD. If you hold 1% of LBR in the LBR Staking Pool, your Real Yield for that year would be 150,000 peUSD or USDC.

peUSD Repayment Fee

The protocol also generates revenue through a borrowing APY of 1.5% on the total amount of peUSD minted from Non Rebase LSTs by each individual user. The fee is distributed to esLBR holders, effectively in the form of peUSD.

This means that holders of esLBR tokens benefit from both the circulation of eUSD and the minting of peUSD within the Lybra Protocol.