Research Summary
The report discusses the author’s investment in Lybra Finance ($LBR) and its potential in the bull market. It provides an in-depth analysis of Lybra V2, its features, and its position in the market. The report also highlights the potential of Lybra Finance in dominating the shares of LSDs and its integration with LayerZero.
Key Takeaways
Lybra Finance’s Dominance in the Market
- Market Share: According to DeFILlama, Lybra Finance has the largest market share (51.734%) with a Total Value Locked (TVL) of $359.9M out of $19.45B worth of $ETH locked.
- Lybra V2 Upgrade: Lybra V2 was a significant upgrade to Lybra V1, expanding far beyond $stETH. It now supports other LST assets like $rETH, $wstETH, $WBETH, and more.
- Integration with LayerZero: Lybra Finance’s integration with LayerZero allows eUSD to go beyond Mainnet to be used on other L2 Chains and DeFI Protocols while still accruing interest.
Understanding Lybra V2’s Features
- Rebase LSTs: Rebase LSTs accrue rewards by issuing additional LSTs. Users can earn a rebase yield of around 8% APY while holding their eUSD or convert eUSD to peUSD on Ethereum Mainnet while still receiving accrued rebase yield.
- Non-Rebase LSTs: Non-rebase LSTs don’t issue additional LSTs as yield to stakers; rather, the value of their staked asset increases as it accrues reward while the amount staked remains the same.
- eUSD and peUSD: eUSD keeps accumulating interest even when converted to peUSD. Holders of non-rebase LSTs will mint peUSD directly, and peUSD doesn’t bear interest like eUSD.
Lybra Finance’s Future Prospects
- Lybra Wars: With the launch of Lybra V2, the report anticipates a competitive scenario similar to the Curve Wars, dubbed as the Lybra Wars.
- Security: Lybra v2 has undergone multiple audits with top-tier leading audit protocols, ensuring its security.
- Potential Binance Listing: The report hints at a potential listing on Binance, following Binance Research’s intensive research on Lybra Financeโs $eUSD.
Actionable Insights
- Investigate the Potential of Lybra Finance: Given its dominance in the market and the significant upgrade of Lybra V2, Lybra Finance presents a potential area of interest for investors.
- Explore the Features of Lybra V2: Understanding the features of Lybra V2, including its support for rebase and non-rebase LSTs, and the functionalities of eUSD and peUSD, can provide insights into its potential returns.
- Monitor Lybra Finance’s Future Developments: Keeping an eye on Lybra Finance’s future developments, including potential listings and competitive scenarios, can provide valuable insights for investment decisions.
