Lybra launches #eusd over-collateralized interest-bearing stablecoin this time. Let me introduce to you the logic behind it? ————Let novices understand it!
How eusd is generated: Users pledge ETH/STETH through Lybra with a mortgage rate of 150%, and eusd is generated.
Product logic:
Why can eusd be stable and generate a premium?
1: eusd can obtain ETH/STETH staking rewards, and the income obtained is not the air coins printed by the protocol, but the income generated by the ETH node
2: Although eusd is produced for over-collateralization, 1 can make it an interest-bearing stable currency, making it a stable currency more similar to bonds, so the market will not trade eusd for the purpose of trading, making it more More generates premiums
Note: eusd is pegged to usd 1:1 | usd: trading; eusd: trading/stable income |
3: Users can pledge proceeds from further activities on CRV and mine #LBR proceeds from further activities.
Therefore, eusd has always been at a premium:
Summary of LBR economic model: forward flywheel
The price of LBR will be tied to Lybra protocol revenue↑
Agreement income ↑ profit denial LBR ↑
LBR↑ prompts those who stake ETH/STETH to increase eusd (mint)↑
eusd↑Subsidy pledge (esLBR pledge increased)↑
Summarize:
Lybra is preparing to be a money printing machine in the LSD track, but due to the increase in its protocol income and related reward support, eusd holders are unwilling to trade. Instead, they continue to lock up their positions to obtain that part of the stable income. The source of this part of the revenue is the Ethereum pledge node reward. The more prosperous the Ethereum ecosystem is, the higher the protocol revenue will be. The increase in protocol revenue will cause the price of LBR to respond accordingly. eusd can mine LBR on CRV, causing eusd to become A bond-like stablecoin that earns stable yields, rather than trading stablecoins.
Therefore, Lybra will soon launch peusd in the next version 2.0, which is similar to separating the interest-earning and transaction attributes.