Lybra Finance

Lybra Finance is a decentralized CDP (Collateralized Debt Position) protocol built on Liquid Staking Derivatives (LSD) that lets users deposit ETH or stETH to mint eUSD, an over-collateralized stablecoin. The protocol aims to offer a stable, yield-bearing stablecoin where holders earn income sourced from the LSD staking rewards generated by the underlying deposited collateral. Governed by the Lybra Foundation and LybraDAO community, it operates primarily on Ethereum.

Lybra Finance's yield comes from a basic two-sided setup.

On one side: borrowers (people who mint eUSD). They deposit ETH or stETH (a liquid staking token from Lido Finance) as collateral. That deposited collateral earns ETH staking rewards — roughly ~5% per year, paid as stETH. But the borrower does not keep those rewards.

On the other side: eUSD holders. The protocol collects those staking rewards, converts them into eUSD, and hands them out to anyone holding eUSD. So holders earn a stable yield, funded by the staking rewards that borrowers gave up.

On top of this, borrowers also pay a borrow interest fee — that's extra protocol revenue. Historically, Lybra also ran mining programs (Phase 1 and 2) that distributed LBR governance tokens as incentives to attract early users.

All fees, reward rates, and incentive structures are set by LybraDAO governance — they are not tied to any changing dashboard number.