Lybra V2: Overview and Updates

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This is not an alpha thread or is it? This is a summary thread on wtf is going on with Lybra V2. Do not read it if you do not want to grow your knowledge. If however, you want to know what @LybraFinanceLSD are doing with the V2 edition of their experiment then read below.

This thread will cover: > Lybra’s v1 success > Omnichain (OFT and weUSD) > Added LSDs collaterals > Tokenomics upgrades > Mining update/Emission tweaks > Wen Launch > Closing thoughts

Lybra’s V1 success: Lybra’s a decentralized finance protocol issuing a stablecoin (eUSD) backed by LSDs starting with stETH — the liquid received for staked ETH on @LidoFinance You can check out our previous article here to get started. 👇🏽 blocmates.com/blogmates/the-race-to-stablecoin-supremacy-enter-lybra-finance/

since the launch of Lybra v1 in April, the protocol’s performed considerably well with some of the metrics mentioned above: > Over $60m in TVL > Over $20m eUSD borrowed and in circulation > crossed 7k on twitter before @jediblocmates > Launched a bug bounty program .. 😮‍💨

But Lybra isn’t stopping anytime soon. Laced with feedback from the community and supporters, Lybra is gearing up for V2 What’s the content? We are about to find out in this thread starting with Omnichain integration. Ready?

Ominichain integration (OFT and weUSD) >Arbitrum’s TVL has been impressive and is simply becoming the home for DeFi. >Lybra recognizes this and will be integrating with the Arbitrum chain and other chains in the future. Lybra will be omnichain by integrating LayerZero. 👇🏽

To function as an omnichain protocol, Lybra tokens (eUSD and LBR) will need to be transformed to OFTs (Omnichain fungible tokens) Users will be able to: >Mint eUSD on ethereum >Bridge eUSD to L2 to receive OFT - weUSD Once eUSD is bridged, a pool is formed in weUSD 👇🏽

Support for other LSDs and LSTs : In V2 , Lybra will add support for the following: rETH, stETH2, wBETH, swETH, and tapETH. However, these can be removed by the DAO and newer ones can be added as well if a decision is reached by the DAO 👇🏽

New LSD integration means more opportunities and room for growth as TVL increase will attract more deposits and increase eUSD borrowing More borrowing = eUSD utility across chains It’s all a big beneficial f—- cycle There’s more 👇🏽

Tokenomics Upgrade: The Lybra team will be adjusting the tokenomics to accommodate a few new items: > LBR to become deflationary token via burns > A small portion of the supply goes to reserves to supercharge Lybra through partnerships and onboarding institutions. 👇🏽⛳️

More on tokenomics upgrade: > In a situation where a VC is onboarded, vesting will be in line with TGE and for a year It’s also important to migrate from the genesis LBR to the new contract as a deadline would be fixed and a snapshot taken to this effect. 👇🏽

Contd: > esLBR vesting will be increased from 30days to 60days at 1.66% daily vesting. 👇🏽

Mining update/ emission tweak esLBR emission will be tweaked using a dynamic liquidity provider metric. How? > A minimum 5% threshold in locked Dynamic Liquidity relative to the total value of borrowed eUSD

Contd: To be eligible for emission rewards, users got to provide dLP tokens in the tune of 5% and above > Where a user’s dLP falls below the threshold (5%) of borrowed eUSD, the user won’t receive the next esLBR emissions 👇🏽

Contd: > During the period of ineligibility, a bounty will be placed on the unclaimable reward and can be purchased at a 50% discount in LBR > Should the dLP rise back to or over 5%, the user resumes receiving the rewards

Contd: > Version 2 will witness an increase in locking lengths and proportional boosts > Other pool incentives will remain unchanged although yields might fluctuate 👇🏽

Other updates 🤷🏼‍♂️ > V2 will come with an updated UI/UX design, (hopefully distinct from LIDO’s this time in terms of UI 😂) > The DAO will be officially launched after V2 and will be highly effective in decision making > More research into improving eUSD peg / Audits 👇🏽

Wen Launch? 🚀 The moment you’ve been waiting for 🌚🏌️‍♂️ Testnet will be available next month, while Mainnet is scheduled to arrive sometime between July and August. 🔥💯

Closing thoughts 💭 As LSD narrative continues to heat up, Lybra’s sturdy approach to Stablecoins is interwoven so neatly with the narrative and as early signs have shown, is quite promising. Lybra protocol is one to keep an eye on especially as we gravitate towards V2!