Exploring LybraFinanceLSD: A Protocol for Generating Interest on Stablecoins

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LSD is now the LARGEST sector in DeFi by TVL valued at almost $20B. As ETH staking continues to rise, LSD protocols are poised for explosive growth. 🔥 In this thread, we will see how @LybraFinanceLSD is one such protocol. 🧵👇

Lybra uses Liquid Staking Tokens (LSTs) to power its stablecoin. eUSD is pegged to the US dollar and backed by ETH collateral. Users can deposit ETH or LSTs to mint eUSD. Their mission is to create a secure, decentralized, and interest-bearing stablecoin.

To access Lybra's potential, this thread will cover: • Why use eUSD? • How does it generate interest? • $LBR Token • Metrics • Roadmap/Catalysts • Final Thoughts Let's get itttt!

➡️ Why would anyone use eUSD? It automatically generates an 8% yield just for holding it. No staking needed. This incentivizes adoption and drives demand. These are the most important pieces for a successful stablecoin. You can even get interest-free loans!

➡️ How does it generate yield? LSTs are used as collateral to mint eUSD. The LST collateral grows in value over time by receiving ETH rewards. These rewards are used to pay eUSD holders (~8% yield) and $LBR stakers.

This creates a fully scalable interest-bearing stablecoin. One free from the centralization risks of traditional stablecoins like $USDC and $USDT. Unlike $DAI or $FRAX, it gives holders a stable source of revenue.

➡️ LBR Token Key Utilities: • Governance • Voting • Stake to earn protocol revenue Max Supply is 100M. They will be launching a DAO so the protocol can be controlled and managed by LBR holders.

➡️ Metrics Adoption is key for any stablecoin to succeed. In just under 30 days: • $60M+ in TVL • TVL up ~4x in the past 7 days • $30M+ eUSD minted • Almost $100k paid to eUSD holders so far This shows the growing demand for the protocol. Things are heating up. 🔥

➡️ Roadmap/Catalysts Some exciting things are coming: • Arbitrum Launch • Omnichain • Lending protocols • Will accept more LSTs soon • DAO Launch • V2 Launch Once V2 goes live, I'll drop a thread to cover the details and implications. Stay tuned! 👇

They recently teased a partnership with @swellnetworkio (a project back by Mark Cuban @mcuban). 👀 twitter.com/LybraFinanceLSD/status/1659029350870839296?s=20

➡️ Final Thoughts This is a new multi-billion dollar industry that exploded after the Shanghai Upgrade. Lybra seeks to create a fully decentralized stablecoin built on ETH and LST collateral. This is worth BILLIONS and the metrics show they are off to a great start!

This is a top 3 LSD project in the making. If the sector is worth ~$20B (and can easily 2-5x in the bulla), what will one of its top projects be worth in terms of mc? $100M? $500M? $1B? More? Those are 10x, 50x, and 100x away. $LBR isn't the one to fade fam. A gem!

V2 is around the corner and the anticipation is killing me! Stay tuned for my thread to cover the details and implications when it's released.