Lybra Finance

Lybra Finance is a decentralised finance (DeFi) protocol that focuses on creating an interest-bearing stablecoin called eUSD. The protocol uses Liquid Staking Tokens (LSTs) like stETH and ETH as collateral, allowing users to mint eUSD. The goal is to provide stability in the cryptocurrency market while offering users a steady passive income through rebasing yields on stETH. The protocol is decentralised and governed by LBR token holders via a DAO (Decentralised Autonomous Organisation), which oversees decision-making and protocol changes.

Lybra Finance is designed to mint eUSD, an over-collateralised stablecoin backed by ETH and stETH. Users can deposit their ETH or stETH as collateral to generate eUSD, which maintains stability and accrues interest over time. The protocol also introduces peUSD, a version of eUSD that can operate across multiple blockchains through omnichain functionality, increasing its utility in the DeFi ecosystem. LBR tokens are central to the governance, staking, and operational mechanisms of the Lybra Finance protocol.

The LBR token serves multiple functions within the Lybra Finance ecosystem:

• Governance: LBR is a governance token that allows holders to participate in the protocol's decision-making process via the Lybra DAO. Token holders can vote on proposals that shape the future development of the protocol, such as updates, fee structures, and integrations.
• Staking: LBR can be staked within the protocol. Stakers participate in securing the system and receive rewards generated from the protocol’s revenue, primarily from fees charged on the eUSD stablecoin. This gives token holders a direct share of the income generated by the system.
• Rewards: LBR is also used as a reward token for various activities on the platform, including minting eUSD and providing liquidity in the eUSD/ETH pools. These incentives encourage participation and liquidity provision within the Lybra ecosystem.
• Protocol Revenue Sharing: LBR holders who stake their tokens receive a share of the protocol’s revenue. This revenue is generated through service fees levied on the total eUSD in circulation, which are distributed to LBR stakers as part of the "real-yield" model.

These utilities make LBR an essential component of the Lybra Finance protocol, enabling both governance and economic incentives that sustain its decentralised financial ecosystem.