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Lybra V2 launched for a month with TVL exceeding $100 million, but LBR price dropped by 50%.

Sharon

2023-09-26 13:02

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Content Directory:

· Continuous Build since April launch

· Official social media once hinted at a relationship with Lido, which was denied

· The protocol has received attention, but the token price continues to decline

BlockBeats News, September 26th, Lybra Finance, a stablecoin protocol, announced on social media that its TVL has exceeded $100 million within a month of the launch of Lybra V2. Currently, the TVL of Lybra V2 has reached $118 million, and the TVL of Lybra V1 has reached $40 million. The total TVL of Lybra Finance has exceeded $150 million.

4 月推出以来持续 Build

Translation:

Continuous Build since Launch in April

Lybra Finance was launched in April this year, and the team has been actively building since its launch.

June 4th, Lybra Finance, the stablecoin protocol of LSD, launched a collateral ratio (CR) monitoring function. When a user's collateral ratio falls below a specific threshold, it will automatically repay part of the user's debt. Once the collateral ratio returns to the predetermined level, this automatic repayment function will stop. The function aims to provide users with additional protection mechanisms to resist liquidation risks in volatile markets.

On July 20th, the LSD stablecoin protocol Lybra Finance V2 testnet is now live. On Lybra V2, users have two different ways to mint eUSD and peUSD, with peUSD being the full-chain version of eUSD.

Related reading: "How to use Lybra V2 testnet".

"Lybra V2 brings a series of new features to the Lybra protocol, including full-chain functionality, expanded LST options as collateral, advances in fund securities, and a new mechanism to maintain the eUSD peg, while supporting the value of LBR."

On September 1st, Lybra Finance, the stablecoin protocol of LSD, announced the launch of Lybra V2. Users should ensure that they migrate LBR from Lybra V1 to Lybra V2 before 8:00 am on October 1st Beijing time.

On September 9th, according to official sources, the LSD stablecoin protocol Lybra Finance announced its integration with the LayerZero OFT standard, which will introduce a new DeFi practical version of peUSD-eUSD.

Official social media once hinted at a relationship with Lido, which was denied

In mid-May of this year, the Lybra Finance team's official Twitter account hinted at its collaboration with the Lido team during the Lido V2 celebration event, as seen in this tweet.

Later on June 1st, Lido officially clarified that it has no affiliation with Lybra Finance, regardless of how its branding may suggest. "While the evolving LSD DeFi landscape is exciting, please exercise caution and do your due diligence when interacting with new protocols."

Protocol receives attention, but token price continues to fall

Lybra V2 has received significant attention from the community since its launch.

Twitter KOL Yuzhong Kuangshui (@qiaoyunzi1) stated in a Substack article that she is quite satisfied with her vision for Lybra V2, which is dedicated to solving issues such as TVL and Tokenomics encountered in its own protocol development, as well as the lack of application scenarios for eUSD.

Related reading: "An Analysis of Lybra Finance v2: Expanding eUSD Use Cases, Attracting TVL, and Optimizing Tokenomics"

"There are several exciting features in v2:

1. Full-chain expansion through LayerZero;

2. Addition of more LST asset types;

3. New Tokenomics for LBR;

4. Protocol revenue/fee capture reform;

5. DAO governance."

Mint Ventures also expressed some recognition of Lybra V2 in its analysis article, but also pointed out that if its peUSD cannot build richer use cases in the future, Lybra will still be a mining game, "although Lybra's mining game design is more sophisticated and the game is further complicated in V2."

Related reading: "Mint Ventures: LSDFi's rising star Lybra's growth path and real challenges"

Lybra's idea may be this: by providing stablecoin holders with a better interest-bearing stablecoin, it stimulates the demand side of stablecoins through mechanisms rather than incentives, and then combines early incentives for the supply side to stimulate stETH holders to cast and form a closed loop.

Of course, this design will also bring a series of problems, such as the characteristics of eUSD rebase, which makes it difficult to be integrated into other DeFi protocols and inconvenient for cross-chain, which greatly affects the composability of eUSD. And to some extent, Lybra puts all users who cast eUSD in a "prisoner's dilemma".

BlockBeats reported on July 3 that according to market data, Lybra Finance Token LBR broke through $2.1 in a short period of time, with a 24-hour increase of 13.28%.

The next day, Bitget announced that it will list Lybra Finance (LBR) on its innovation zone. Bitget will airdrop LBR to eligible users, with a maximum value of $100 per person. On August 16th, OEX officially announced that OKX will list Lybra Finance (LBR) for trading and open the LBR/USDT trading pair.

Despite the high attention that the Lybra protocol has received from the community, the price of LBR token has been continuously falling over the past month. As of now, according to CoinGecko data, the price of LBR token is $0.833, which is more than 50% lower than the peak of $1.72 in August.