Lybra Finance’s LBR Token Surges Over 10x in Two Weeks, Riding the LSDfi Wave

In an impressive display of market momentum, the price of Lybra Finance’s LBR token has skyrocketed over 10 times in just two weeks. The project, categorized under the Liquid Staking Derivatives (LSDfi) sector, leverages staking derivatives based on various assets to construct its platform.

Lybra Finance is a DeFi protocol that enables investors to mint stablecoins (eUSD) from ETH and liquid staking derivatives such as stETH and rETH. Notably, eUSD falls into the interest-bearing stablecoin category, allowing users to earn profits by holding it.

The Total Value Locked (TVL) of the project has surged by 400% in the past two weeks, currently standing at $140 million USD according to DefiLlama. Lybra Finance was deployed just last month, and its TVL experienced exponential growth after Lido upgraded to version 2 on May 15th.

This upgrade allowed Lido users to unstake their stETH and receive ETH. The project initially began with stETH, a derivative staking product of ETH issued by Lido, and intends to support additional LSD assets in the future. The price of Lybra Finance’s LBR token, which grants holders governance rights and access to protocol revenue, has surged by nearly 30% in the last 24 hours and over 10 times in the past two weeks, as reported by CoinGecko.

Source: Coingecko

Lybra Finance is not the only project within the LSDfi sector garnering attention from the cryptocurrency community. The concept of LSDfi encompasses protocols built on staking derivatives such as stETH, rETH, frxETH, catering to different aspects of decentralized finance (DeFi).

Following the successful Ethereum upgrade to the Shanghai fork, users have gained more freedom to stake ETH on the Beacon Chain. The amount of ETH staked on the network has continued to rise throughout May, currently exceeding 16 million USD or approximately 31 billion USD. The liquid staking sector has emerged as the largest in terms of market capitalization within the DeFi landscape, with Lido Finance leading the way. This has created opportunities for the development of LSDfi projects.

“Liquid Staking projects establish the foundational level in DeFi. The next layer consists of projects that build upon LSD, creating more sophisticated products,” stated @0xYugiAI, a DeFi researcher.

The surge in Lybra Finance’s LBR token price and the rapid growth of the LSDfi sector reflect the increasing popularity of liquid staking derivatives in the decentralized finance space. As the sector continues to expand, investors and enthusiasts eagerly anticipate the emergence of innovative projects that leverage the potential of LSD assets, further propelling the DeFi ecosystem towards new heights.

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