/1 There's a lot of buzz on CT lately about the rapid growth of @LybraFlnanceLSD and their $eUSD stablecoin backed by $stETH and soon other $ETH LSDs.
Let's take a look at where things stand currently and how sustainable the current emissions rate of $LBR is ....
Let's take a look at where things stand currently and how sustainable the current emissions rate of $LBR is ....
/2 The current success of $eUSD is largely driven by the extreme high APR for minting eUSD from stETH collateral: 103.19% paid in esLBR which has a 30-day linear vesting to be turned into liquid $LBR
/3 This extremely high APR has triggered a large influx of stETH into Lybra, resulting in 88.86m $eUSD minted in the past 30 days. The key thing to note is the the APR is largely due to very high esLBR emissions and a rising LBR price ($0.20 to $4 in two weeks).
/4 Lybra for the past 30 days has emitted ~3.74m esLBR to $LBR LPs and eUSD minters and LPs.
@ current price, that's $15m per month, 78% to eUSD minters.
So... can current price sustain or even increase with these extremely high esLBR emissions?
@ current price, that's $15m per month, 78% to eUSD minters.
So... can current price sustain or even increase with these extremely high esLBR emissions?
/5 At present, Uniswap DEX liquidity for $LBR is only $2.2m and there is only 560k of LBR available for sale. So it doesn't take much money to push price up or down.
/6 At current price, Lybra is emitting $11m per month to 88m eUSD by minters, but there simply isn't enough Uniswap exit liquidity for even a fraction of these emissions to be realized by minters without completely rekting the price of LBR, which would also crash that 100%+ APR.
/7 The 30-day vesting of emitted esLBR delays the selling, but it doesn't prevent it!
From my calcs, Lybra is dishing out enormous unrealized $ incentives to keep eUSD minters happy, which are the result of low liquidity + low circ. supply + retail fomo.
From my calcs, Lybra is dishing out enormous unrealized $ incentives to keep eUSD minters happy, which are the result of low liquidity + low circ. supply + retail fomo.
/8 $LBR FDV @ current price of $4.16 is $416m, yet Lybra protocol revenue which is calculated as 1.5% of eUSD supply which is given to esLBR stakers, at current 89m eUSD supply, is only $1.33m per year.
For some context: GMX protocol revenue is $165m and $GMX FDV is $736m.
For some context: GMX protocol revenue is $165m and $GMX FDV is $736m.
/9 So Lybra is emitting $15m per month to $eUSD minters and LBR/eUSD LPs at current $4 price, but is taking in $1.33m per year, yet $LBR is trading at FDV comparable to protocols with $150m+ in fees.
Having said that, Lybra obviously has potential given the rapid growth of the LSD sector, but the imo the current incentives to $eUSD minters seem quite excessive and not so sustainable, especially given how low current DEX liquidity is.
UPDATE: @LybraFlnanceLSD tagged in the first tweet of this thread is a scam account, the real account is @LybraFinanceLSD
Damn these scammers!😡
Damn these scammers!😡
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