Lybra Finance nears $100M in TVL with its stablecoin issuance
Lybra Finance is a protocol that uses liquid staking derivatives to create a decentralized stablecoin that earns interest. In the past two weeks, its total value locked (TVL) has increased almost 400% to almost $100 million as of Friday. The protocol was launched just one month ago and its TVL growth coincides with Lido upgrading to its second version on May 15, which allows Lido users to unstake their stETH and receive ETH. Lybra leverages Lido Finance-issued ETH proof-of-stake and stETH as its primary components, with plans to support additional LSD assets in the future, according to Lybra documents. The native token of the Lybra Protocol, LBR, which gives holders governance powers and access to the protocol’s revenue, has risen by 33.8% in the past 24 hours and 173% in the past seven days, standing at $2.23, according to CoinGecko data. Decentralized exchanges hold 9.61% of the total LBR supply, down from 23% two weeks ago, according to blockchain data firm Nansen. Nansen also reports that smart money wallets hold 4.74% of the total LBR supply today, an increase from 0.82% on May 16, indicating that savvy crypto investors are accumulating the token. A wallet is considered “smart money” by Nansen if it has profited at least $100,000 by providing liquidity or making multiple profitable trades on decentralized exchanges. This article was edited by Oliver Knight.