Staking & Yield Boost

Lybra introduces a mechanism where esLBR (vested LBR tokens) convert to LBR, with a vesting period of 90 days. This mechanism is key to the protocol's design, aligning long-term incentives for users while maintaining a stable network.

Boost Mechanism

Boosts in Lybra are calculated based on a formula that involves the amount of locked up LBR (which equals the amount of esLBR), the Maximum LBR Lock-up Limit (also referred to as the esLBR Limit), and a time weight factor. The formula is as follows:

Boost = LBR (or esLBR Locked)/ esLBR lockable threshold * time wight

The Maximum LBR Lockable Limit (esLBR Limit) for a user is determined by the ratio of the user's total mint value to the total mint value across the entire protocol, multiplied by the total circulation of esLBR. This is illustrated as:

esLBR lockable threshold = your loan value in USD / overall loan value in USD * total circulation of esLBR

Users are allowed to lock up more esLBR than the lockable limit, but the boost will be calculated based on the real Maximum esLBR Lockable Limit.

After selecting a lock-up period, you can only extend it and cannot decrease it. If you decide to re-lock your esLBR during the lock-up period, the lock-up period will start anew.

You can choose to lock your esLBR beyond the esLBR Lockable Threshold, but your max boost will still be calculated based on the esLBR lockable threshold.

Example:

My eUSD	100,000	Formula
Total eUSD in Circulation	110,168,853
Total LBR Circulation	10,000,000
My Locked LBR	7,664.8
esLBR lockable threshold	9078.975686	My eUSD loan value in USD / overall loan value in USD * Total Circulation of esLBR

Lock up Time	Time Weight	Boost *
1 Month	*0.05	4.22%
3 Month	*0.1	8.44%
6 Month	*0.25	21.11%
12 Month	*0.5	42.22%

Note:

1. Boost applies to the mint pool APR only and will not affect the LP pools. eUSD and peUSD minters can boost their APR on the mint pool by up to 1.5x.

2. Your esLBR will still receive protocol revenue while being locked in Boost.