Lybra Protocol is a decentralized protocol created to add stability in the often-changing cryptocurrency market. It is built on LSD (Liquid Staking Derivatives) and starts by using ETH from Lido Finance’s proof-of-stake and stETH as its main building blocks, with intentions to include other LSD assets later. The protocol’s core aim is to deliver the crypto ecosystem a more secure and decentralized stablecoin, eUSD, designed to provide stable yield for its token holders. As a DeFi protocol, Lybra enables users to mint eUSD by borrowing against their deposited ETH and stETH.

A key aspect of Lybra Protocol is that holders of minted (borrowed) eUSD can receive steady stable earnings. These returns are supported by the LSD (Liquid Staking Derivatives) rewards generated from the ETH and stETH locked in the system. Put simply: after depositing ETH or stETH and minting eUSD against it, users can receive stable income in stETH (approximately 5%), which the protocol then converts into eUSD and shares with them.

Lybra is an open-source DAO (Decentralized Autonomous Organization). The project is run by participants worldwide who hold its governance token, LBR. With a governance framework that includes Executive Voting and Governance Polling, LBR holders can help shape the protocol’s future. The Lybra (LBR) Token is the network’s native token that powers Lybra Protocol, providing access to essential capabilities across the system-such as staking, governance, minting, and liquidators rewards.