Stablecoin Issuer Lybra Finance Launches Arbitrum Testnet Amid Quest to Be More DeFi-Friendly

Users can now interact with Lybra’s new companion stablecoin peUSD, which is said to be more compatible with decentralized finance protocols than the protocol’s main stablecoin eUSD.

AccessTimeIconJul 19, 2023 at 4:53 p.m. UTC
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Lybra Finance rolled out its v2 testnet on Arbitrum’s Goerli network Wednesday morning as the issuer of a yield-bearing stablecoin aims to entice more high-frequency traders and other decentralize finance (DeFi) users with its products.

Lybra’s eUSD stablecoin is designed to be worth $1 and generate income from collateralized liquid staking tokens. With the v2 upgrade, users can use RocketPool, Binance and Swell’s liquid staking tokens as collateral to generate eUSD, per a blog post, and the revision also introduces a companion stablecoin called peUSD.

Users can convert eUSD to peUSD, which aims to be friendlier for high-frequency traders – a term that describes a wide range of automated trading firms, including market makers and other vital liquidity providers – that use decentralized finance protocols, said 0xP, Lybra’s pseudonymous head of commercial partnerships.

The testnet rollout comes as the market capitalization of eUSD has surged 152% in the past 30 days to $198 million as investors deposit staking tokens to mint eUSD. Moreover, Lybra is nearing $400 million in total value locked, a 108% increase in July, data from DefiLlama shows.

LBR, Lybra’s governance token that has more than 3,000 unique holders per Nansen, has increased 4.6% in the past 24 hours to $1.97.

Edited by Nick Baker and Danny Nelson.


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Sage D. Young

Sage D. Young was a tech protocol reporter at CoinDesk. He owns a few NFTs, gold and silver, as well as BTC, ETH, LINK, AAVE, ARB, PEOPLE, DOGE, OS, and HTR.

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