Research Summary
This report provides a comprehensive overview of the Lybra V2 protocol, including a Q&A session with the Lybra team. The discussion covers the protocol’s success, key advantages, and future plans. It also delves into the challenges faced in V1 and how they are being addressed in V2. The team also explains the new features and mechanisms introduced in V2, such as peUSD, Dynamic Liquidity Provisioning (dLP), and the Stability Fund. The report concludes with the team’s anticipation for the V2 Mainnet launch.
Key Takeaways
Lybra V2’s Success and Key Advantages
- Community’s Positive Response: The Lybra protocol has received an overwhelmingly positive response from the community, with $370m worth of staked ETH.
- First Mover Advantage: As an early player in the field, Lybra has established a strong foothold and built credibility within the community.
- Continuous Innovation: The Lybra team has remained committed to innovation, continually enhancing the protocol. The launch of V2 will introduce support for more LST collateral, native cross-chain functionality, and other enhancements.
Challenges in V1 and Solutions in V2
- Limited Scalability of eUSD: In V1, the rebase nature of eUSD made it less compatible with DeFi. In V2, this issue is addressed with the introduction of peUSD, a DeFi utility version of eUSD.
- Introduction of Dynamic Liquidity Provisioning (dLP): In V2, users must maintain a minimum of 5% in locked Dynamic Liquidity relative to their total loan value to qualify for mining emissions.
- Establishment of the Stability Fund: The Stability Fund, established using eUSD collected from bounty programs, aids in maintaining the eUSD peg.
Anticipation for V2 Mainnet Launch
- Security and Stability: The team is currently undergoing audits to ensure the safety and security of the V2 protocol. The launch will proceed once all identified issues have been addressed.
- Expected Launch Date: While an exact date is not provided, the team assures that the launch of V2 is a top priority and will happen as soon as the protocol’s security and stability are ensured.
Actionable Insights
- Community Engagement: The Lybra team encourages community members to accumulate more LBR and stake them to bolster their voting weight ahead of the Lybra wars.
- Participation in Testnet: Users are also encouraged to participate in the ongoing Lybra quest by interacting with the testnet and following the rules.
- Open Communication: The team invites further questions from the community via Twitter using the hashtag #LybraV2 and $LBR.
