A Step by Step Guide on How to Use Lybra Finance
Welcome to Lybra Finance, here is a step by step guide on how to use the protocol.
Let’s get started.
1. Mint eUSD
1.1 Go to https://lybra.finance/dashboard and connect your wallet, ensuring connection to Ethereum mainnet.
1.2 On the Dashboard page, enter the amount of ETH/stETH you want to deposit and the amount of eUSD you wish to mint/borrow.
1.3 The minimum collateral ratio is 160%. This means that if you deposit $160 worth of ETH/stETH, you can mint up to 100 eUSD with 0 loan cost/interest.
1.4 If your collateral ratio drops below 150% due to market fluctuations, you will be liquidated. To avoid this, it is recommended to maintain a collateral ratio above 160%.
1.5 After minting, your position stats will be displayed on the Dashboard page. Be sure to monitor your collateral ratio and liquidation price to avoid liquidation.
1.6 You can mint additional eUSD if your collateral ratio remains above 160% without needing to add more collateral.
1.7 Upon minting eUSD, you will begin mining LBR tokens from the eUSD loan pool (distributed as esLBR). Visit the EARN page to check your APR. You can boost your APR by 50% by becoming a Redemption Provider, allowing others to redeem their eUSD against your collateral.
1.8 The USD value reduction of your ETH collateral corresponds to the nominal eUSD amount decrease in your debt. Essentially, redemptions are like someone else repaying your debt and retrieving an equivalent amount of your collateral. This process improves the collateral ratio of the affected collateral and debt, making them less risky, and you will receive a 0.5% redemption fee.
2. Repay
2.1 Partial repayment: You may choose to repay some of your debt to increase your collateral ratio and avoid liquidation. This makes your funds more stable and secure. However, you will no longer earn yield from the repaid portion of the eUSD.
2.2 Full repayment: You can opt to repay all your eUSD debt to retrieve all your collateral.
3. Redeem
3.1 You can redeem your eUSD for stETH from Redemption Providers at face value (1 eUSD = $1 USD worth of stETH). This is not affected by eUSD’s actual market price. For example, even if eUSD is priced at $0.9 USD on the market, you can still redeem 1 eUSD for $1 USD worth of stETH. (For more information on redemption, click here)
3.2 Upon redemption, you will receive an equivalent amount of stETH from Redemption Providers (a 0.5% fee applies). However, your debt remains unchanged, and you must repay it before retrieving your collateral.
4. Withdraw
4.1 Withdraw with remaining debt: You can withdraw a portion of your stETH even if your debt hasn’t been fully repaid. The withdrawable amount is determined by your collateral ratio.
4.2 Withdraw with debt paid off: Once your debt is repaid, you can withdraw all your collateral.
Thank you for your continued support
Lybra Finance⚖️
Website: https://lybra.finance/
Docs: https://docs.lybra.finance/
Twitter: https://twitter.com/LybraFinanceLSD
Discord: https://discord.gg/mgyq3PhdJg
