Overview

Lybra V2 protocol supports the addition of any LST (Liquid Staking Token) as collateral in its vaults. LSTs can be classified into two categories: rebase tokens (such as stETH and BETH) and non-rebase tokens (such as rETH and WstETH). Each type of LST asset has its own separate vault.

For rebase token vaults, the unique characteristic is that the token quantity automatically increases while maintaining a fixed value relative to ETH. The Lybra protocol captures the rebase earnings of these assets and distributes them as interest in eUSD to eUSD holders.

For non-rebase token vaults, the tokens' quantity remains unchanged, but the amount of ETH they represent may vary. The Lybra protocol does not convert its own earnings from these assets. Instead, it allows the use of these assets to mint peUSD with low annual interest fees.