LBR is the governance token of Lybra Finance. Due to the introduction of the LSD (liquidity staking derivative) token eUSD by Lybra Finance, its governance token LBR has garnered significant user attention.
eUSD is the stablecoin of Lybra Finance. Unlike other stablecoins, eUSD requires users to stake ETH to mint eUSD. eUSD is also the LSD token, and staking eUSD can yield higher annualized returns compared to staking ETH, reaching 7.2%. If users choose not to stake eUSD, they can also use eUSD on Lybra Finance to purchase other products or services.
At the same time, the annualized returns obtained from staking ETH are also converted into eUSD and distributed to users who minted eUSD using ETH. Regular users staking ETH can earn an annualized return of around 4%, while staking ETH to mint eUSD can yield an annualized return of 7.2%.
If users want to liquidate their eUSD, they can use it to purchase back ETH.
eUSD is anchored to the price of the US dollar, and the returns are based on the returns from staking ETH without considering the volatility of the ETH price in the cryptocurrency market.
The background of the Lybra Finance team is not well-documented. They made their first appearance at a blockchain conference in Hong Kong, and the CEO is reportedly also a developer. The product and project are very new. Currently, due to the rising price of the LBR token, its market capitalization has exceeded $100 million.
The project team claims that they will launch a full-chain mode based on Layer Zero in August, where any token can be minted into eUSD on Lybra Finance following this model.
Currently, Lido holds an 80% market share of LSD, almost a monopoly. The price of the Lido (LDO) token is around $2.2, with a maximum supply of 1 billion tokens. Currently, the staked Ethereum is valued at $180 million, and the minted eUSD is valued at $90 million. Therefore, the theoretical value of the LBR token is around $0.3.
User FOMO has led to an excessively high token price, and currently, the LBR token price is undergoing a retracement.
The BingX exchange has already listed the LBR token, and interested users can purchase it on the BingX spot trading market. The exchange offers low transaction fees and does not require payment of gas fees.
Buying cryptocurrencies carries risks, and new projects pose even greater risks. Users are advised to DYOR (Do Your Own Research) and make their own decisions.