Lybra Finance, a protocol that mints stablecoins backed by LST as collateral, has seen a 40-fold increase in the past month and a half, making it one of the most popular projects recently. Cryptocurrency researcher Yuuki reviewed the development process of the protocol since the LBR’s IDO began on April 22nd, and analyzed the problems that the protocol needs to solve for long-term development.
Overall, despite controversy surrounding its product structure, LBR has timely product delivery, minimal mining selling pressure, and an easy-to-spread tag image. During the recent huge price increase, the team timely released the V2 version in cooperation with the secondary market, expanding collateral, logging into Arbtrum, and introducing token deflation concepts, becoming a booster for price increase. Currently, the market has entered the stage of speculating on LBR’s expected performance on CEX.
Currently, the protocol’s TVL is 167 million yuan, up 176% in one week. The circulating supply of LBR is 6.4878 million + esLBR 1.2874 million, totaling 7.7753 million. The daily average release of esLBR mining is 52,200, and the annual inflation rate is 318%. The yield for Lybra pool 1 (eUSD mint pool) is 105.93%, for pool 2 (LBR/ETH LP) it is 338.37%, for pool 3 (eUSD/USDC LP) it is 30.03%, and for single LBR staking it is 29.78%.
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Even though it takes 30 days (V2 will adjust to 60 days) for esLBR to convert to LBR, Lybra protocol is still difficult to escape the positioning of mining coins, and the correlation between TVL and coin price is obvious. The real demand for collateral coinage (imbalance of risk-return structure) and the high liquidity cost of interest-bearing assets are long-term development issues that Lybra faces.