eUSD is a pegged to the US Dollar, backed by an excess of collateral, and issued in a decentralized and unbiased manner. [1]


eUSD is a censorship-resistant, fair and transparent stablecoin built on the Lybra Finance protocol. Using only and as collateral with an excess collateral ratio of 150% to maintain safety and decentralization, eUSD generates stable interest powered by LSD. [5] eUSD is yield-bearing, with APY of approximately 8% unlike , , and . [2]

eUSD stability is maintained through a combination of overcollateralization, liquidation mechanisms, and arbitrage opportunities. These factors work together to ensure that the value of eUSD remains close to its 1 USD peg. Each 1 eUSD is backed by at least $1.5 worth of as collateral. Overcollateralization helps maintain stability by ensuring that the value of the underlying collateral is greater than the value of the eUSD issued. Arbitrage opportunities arise when the eUSD price deviates from its 1 USD peg. Users can take advantage of these price discrepancies to make a profit and help restore the eUSD price to its intended value. If the eUSD price exceeds 1 USD, users can mint new eUSD by depositing ETH as collateral and then sell the newly minted eUSD on . As more eUSD is sold, the market supply increases, pushing the price back down to 1 USD.[5]

Lybra Protocol

The Lybra Protocol is a decentralized protocol designed to bring stability to . Built on LSD Liquid Staking Derivatives, the protocol initially leverages Lido Finance-issued ETH and stETH as its primary components, with plans to support additional LSD assets in the future.[4]

Lybra facilitates the minting of eUSD by allowing users to borrow against their deposited ETH and stETH.
eUSD, being an ETH-assets-over-collateralized stablecoin, offers users the security and stability necessary for conducting their business with confidence.

Lybra Protocol allows users earn regular stable income by holding minted (borrowed) eUSD. When users deposit ETH or stETH and mint eUSD against them, they receive a stable income in stETH of approximately 5%, which is converted to eUSD through the protocol and distributed to them. Lybra Stability Fund utilizes the excess eUSD that accumulates from the Advanced Vesting Bounty and the dLP Bounty to maintain the eUSD peg. By depositing ETH into the Lybra Protocol, the deposited ETH can be used as collateral to mint/borrow eUSD at a healthy mint ratio for use in at any time. [3]

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