What is LBR?The Lybra Protocol is a groundbreaking decentralized protocol designed to bring stability to the volatile cryptocurrency world. The protocol is built on LSD (Liquid Staking Derivatives), initially utilizing ETH proof-of-stake issued by Lido Finance and stETH as its main components, with plans to support more LSD assets in the future.
LBR is a protocol that uses LST as collateral to mint interest-bearing stablecoins. The main goal of the protocol is to provide the cryptocurrency industry with a safer and more decentralized stablecoin eUSD, providing stable benefits to its token holders. As a DeFi protocol, Lybra mints eUSD by allowing users to lend and borrow against their deposited ETH and stETH.
eUSD is an ETH-backed stablecoin that provides users with the security and stability they need to conduct business with confidence. A distinguishing feature of the Lybra protocol is that users can earn regular income by holding minted (borrowed) eUSD, which is backed by LSD income generated from deposited ETH and stETH. In other words, when a user deposits ETH or stETH and mints eUSD for it, they will receive a regular income of approximately 5% of stETH, which is converted to eUSD through the protocol and distributed to them.
Development history
Initial stage: On April 22, LBR opened IDO, raising 250 ETH for 5% of the share, corresponding to a single currency price of 0.1U (a 40-fold increase so far), a market value of US$600,000, and a fully diluted market value of US$10 million.
The first round of ups and downs cycle: During the LBR IDO, there was FUD (fear, uncertainty, and doubt) in the community that the team used a currency mixer and the contract-level team could misappropriate IDO funds at will, causing the secondary market price to break after the LBR IDO share was released; Later, with the timely delivery of the team's product functions, it regained the trust of the market, and the price increased in the first round to a maximum of 0.8U.
The second round of ups and downs cycle
Later, due to the currency exchange crisis caused by loopholes in the de-pledge of LBR tokens and the overall capital outflow of the LSD sector, LBR entered a 25-day decline range, with the price falling from 0.8 to 0.2. Later, as MEME and Brc20 ebbed, the ETH pledge rate ignited, and when funds returned to LSD and LSDFi, LBR achieved a huge increase from 0.2 to 4 in two weeks.
Taken together, although the product structure of LBR is controversial, it is the highest quality target among the LSDFi emerging at that time, with timely product delivery and the lowest mining selling pressure. At the same time, LBR has an easy-to-spread label image: stable interest generation. coins, full-chain stablecoins, etc.
In the recent huge increase, the team cooperated with the secondary market to launch the V2 version in a timely manner, expanded collateral, logged into Arbtrum, introduced the concept of token deflation, etc., which became a booster for price increases; the market has now entered the stage of gaming the CEX expectations on LBR.
current situation
Pay attention to Lybra's core data. The current protocol TVL (total locked volume) is 167 million yuan, an increase of 176% in a week. The circulation volume is LBR6.4878 million + esLBR1.2874 million, totaling 7.7753 million. The initial LBR circulation volume is 6 million. Calculated from this esLBR mining releases an average of 52,200 coins per day (lower than indicated in the white paper), and the annualized inflation rate is 318%.
At present, Lybra's first pool (eUSD mint pool) has a yield of 105.93%, the second pool (LBR/ETH LP) has a yield of 338.37%, the third pool (eUSD/USDC LP) has a yield of 30.03%, the LBR single currency pledge yield is 29.78%, and the LBR single currency staking yield is 29.78%. There is a large gap between the currency staking yield and the yield of the first pool and the second pool. The main reason is that the growth of the protocol income is lower than the growth of the currency price. At the same time, the conversion mechanism of esLBR hinders the flow of funds to a certain extent.
Analyzing the above data changes, even if it takes 30 days to convert esLBR into LBR (V2 will be adjusted to 60 days), the Lybra protocol is still unable to escape the mining currency positioning. The correlation between TVL and currency price is obvious. How to activate the real demand for mortgage minting (risk The imbalance of income structure) and the high liquidity cost of interest-earning assets are problems facing Lybra's long-term development.
Can LBR still be bought?
After losing attention to memes, the LSD track is showing signs of picking up again.
The ETH pledge rate exceeds 17%, and the total TVL of the Liquid staking sector reaches $18.98 billion. All protocols have experienced growth. Pendle was listed on three pools, Lybra protocol token $LBR increased five times in seven days, and Frax finance increased by 13% in seven days. In the long run, the narrative of the LSD track is far from over, and new potential players are expected to emerge in LSD summer.
In summary: Although the prospects of LBR involve certain risks, its potential is still worthy of attention. For investors, it is crucial to understand the protocol mechanism behind it and the market direction.