What is the development history of LBR's 40-fold increase and the current business situation?

Author: Yuuki, LD Capital Research Team, Former Director of Muse Labs & ShineINFAITH Source: Twitter, @Yuuki_7788

development path

On April 22, LBR opened IDO, and 5% of the shares raised 250 ETH, corresponding to a single currency price of 0.1U (40X increase so far), MC600,000, and FDV10 million.

The first round of ups and downs cycle: During the LBR IDO, there was a team in the community that used the currency mixer and FUD that the team at the contract level could misappropriate IDO funds at will, which caused the secondary market price to break after the release of LBR IDO shares; after that, with the team's product functions The timely delivery regained market trust, and the first round of price increases reached a maximum of 0.8u.

The second round of ups and downs cycle: Later, due to the currency exchange turmoil caused by the loopholes in the unstaking of LBR tokens and the overall capital outflow of the LSD sector, LBR entered a 25-day decline range, and the price fell from 0.8 to 0.2. Later, with the ebb tide of MEME and Brc20, the ETH pledge rate ignited, and when funds refocused on LSD and LSDFi, LBR achieved a huge increase from 0.2 to 4 in two weeks.

On the whole, although the product structure of LBR is controversial, it is the highest-quality target among the emerging LSDFi at that time, with timely product delivery and the lowest mining selling pressure. At the same time, LBR has a label image that is easy to spread: stable income coins, full-chain stable coins, etc. It cannot be said that $LBR is perfect, but it is really the most reliable token emerging on the LSDFi track, and the market value in circulation is still the lowest.

In the recent huge increase, the team cooperated with the secondary market to timely launch the V2 version, expand the collateral, log in to Arbtrum, and introduce the concept of token deflation, etc., which have become the booster of the price increase; the current market has entered the expected stage of CEX on the game LBR.

Current Situation Pay attention to Lybra’s core data. The current agreement TVL is 167 million yuan, an increase of 176% in a week. The circulation LBR6.4878 million + esLBR1.2874 million totals 7.7753 million, and the initial LBR circulation is 6 million. Calculate esLBR from this Mining releases an average of 52,200 pieces per day (lower than that shown in the white paper), and the annualized inflation rate is 318%;

Data Sources:

Currently, Lybra's first pool (eUSD mint pool) has a yield of 105.93%, the second pool (LBR/ETH LP) has a yield of 338.37%, the third pool (eUSD/USDC LP) has a yield of 30.03%, the yield of LBR single currency pledge is 29.78%, and the yield of LBR single There is a large gap between the rate of return of token pledge and the rate of return of the first pool and the second pool. The main reason is that the growth of the agreement income is lower than the growth of the currency price. At the same time, the conversion mechanism of esLBR hinders the flow of funds to a certain extent.

Analyzing the above data changes, even if it takes 30 days to convert esLBR to LBR (V2 will be adjusted to 60 days), the Lybra protocol is still unable to escape the positioning of mining coins. The correlation between TVL and currency prices is obvious. How to activate the real demand for mortgage coinage (risk return structural imbalance) and the high liquidity cost of interest-earning assets are the problems facing Lybra's long-term development.

The user itself uses the protocol to mint interest-bearing stablecoins. In the process, the user bears an extra layer of contract risk and loses 1.5% of the income. What he gets is only the interest part changed from ETH to stable currency (excluding the price fluctuation exposure of the interest part ). If it is not for nearly 100% of lybra's own token incentives, I don't think the demand for this product can make lybra maintain tens of millions of MCs and hundreds of millions of TVLs.