CDPs · Review
ActiveLybra V1 Review 2026: Legacy eUSD CDP on Ethereum
Lybra V1 is the first version of Lybra Finance, an Ethereum protocol that lets users borrow the interest-bearing stablecoin eUSD against liquid staking derivatives. It has since been superseded by V2, and the remaining TVL is small.
By the DappsAtlas editorial team · Updated
DappsAtlas score
4.8/10
Weak
Our verdict on Lybra V1
4.8/10Lybra V1 suits readers who want to understand how an LSD-backed stablecoin protocol worked or who still hold positions that need migrating. Its main strength is a clear model that pairs stablecoin minting with staking yield. The main caveat is that V2 has replaced it, TVL is small, and the token has a tiny market cap, so new users should look at the current version and verify audits, fees and contracts first.
Score breakdown
How Lybra V1 scores
- Security
- 5.0/10
- Ease of use
- n/a
- Fees
- n/a
- Features
- 5.5/10
Scores run from 0 to 10 and are based only on facts we could verify. Where information was missing we mark the score n/a rather than guess.
What is Lybra V1?
Lybra V1 is the first version of Lybra Finance, a decentralised protocol on Ethereum that issues the stablecoin eUSD against liquid staking derivatives. DefiLlama classes it as a CDP protocol and describes the project as developing omnichain stablecoins based on liquid staking derivatives. It has been listed since April 2023.
The protocol has since moved on to a second version. A published migration guide explains how to shift holdings from V1 to V2, and rewards were announced for users who migrated during the first week of the V2 mining program. As a result, V1 is best understood as a legacy deployment.
TVL is about $344,700, up 3.7% over seven days. The LBR token trades at a very small market cap according to price trackers. DefiLlama lists two audits, though the reports themselves are not described.
How Lybra V1 works
Lybra V1 is a collateralised debt position protocol. A user deposits liquid staking derivatives, which are tokens representing staked ETH that continue to earn staking rewards. Against that collateral the user can mint eUSD, a stablecoin, up to a limit set by the protocol's collateral ratio.
The key feature is that eUSD is described as interest-bearing. The yield comes from the staking rewards generated by the collateral, so holders can earn without a separate lending step.
If the collateral value falls too far relative to the minted eUSD, positions can be liquidated to keep the system backed. The LBR token is tied to governance through the Lybra DAO.
5 features
Key features
01
CDP stablecoin minting
Users lock liquid staking derivatives as collateral and mint eUSD against it, following the standard CDP model.
02
Interest-bearing eUSD
eUSD is described as an interest-bearing stablecoin, with yield tied to staking rewards on the collateral.
03
LSD-based collateral
The protocol is built around liquid staking derivatives, aiming to combine staking yield with stablecoin liquidity.
04
LBR governance token
LBR is the protocol's token, linked to the Lybra DAO, which is described as the governing body of Lybra Finance.
05
V1 to V2 migration path
A published guide explains how to move holdings from V1 to V2, with rewards offered to early migrators.
Pros and cons
What we like
- Clear concept: mint a stablecoin against staked-ETH collateral while the collateral keeps earning.
- eUSD is designed to be interest-bearing, so holders may earn yield without extra steps.
- Two audits are listed for the protocol.
- Documented migration path to V2 for existing users.
- Runs on Ethereum, which has deep tooling and wallet support.
Watch out for
- Lybra V1 has been superseded by V2, so new activity is directed elsewhere and the V1 contracts are effectively legacy.
- TVL is small, at roughly $345,000, which limits liquidity and market depth.
- The LBR token trades at a very small market cap, reported in the tens of thousands of dollars, so it is thinly traded and volatile.
- Stablecoin value depends on the price of staked-ETH collateral and on the protocol's smart contracts working as designed.
- The team, audit reports and fee schedule are not set out, so users must verify them independently.
- Interest-bearing stablecoin yields come from staking rewards and can change or fall.
Lybra V1 fees
Fee details for Lybra V1 are not published. Users would normally see any borrowing or minting charges, along with network gas costs, in the protocol's app before confirming a transaction.
Because the product runs on Ethereum, gas costs apply to every deposit, mint, repayment and withdrawal. Check the live interface for current terms.
Is Lybra V1 safe?
DefiLlama lists two audits for Lybra, but the auditors and findings are not described, so readers should check the reports directly. The protocol is non-custodial in the usual CDP sense, meaning collateral sits in smart contracts rather than with a company, which makes contract risk the main concern.
Other risks include liquidation if collateral prices fall, stablecoin depeg risk, and reliance on the liquid staking tokens used as collateral. V1 is a superseded version, so users should follow official guidance on migration. Team details and regulatory status are not published in the sources reviewed.
5 steps
How to get started with Lybra V1
- 1
Confirm through official Lybra channels whether V1 is still the right place for your funds, since V2 has replaced it.
- 2
If you hold assets in V1, follow the official migration guide to move them to V2.
- 3
Use a self-custody Ethereum wallet and verify the contract addresses on official sources before approving anything.
- 4
Start with a small amount to understand collateral ratios and liquidation thresholds.
- 5
Monitor your collateral ratio and repay or add collateral if the market moves against you.
Who Lybra V1 is for
Lybra V1 is mainly relevant to existing users who still hold positions and need to migrate, and to researchers studying LSD-backed stablecoin designs. New users looking for a CDP stablecoin should review the current version and its risks instead.
Lybra V1 FAQs
What is Lybra V1?
Lybra V1 is the original version of Lybra Finance, a collateralised debt position (CDP) protocol on Ethereum. Users deposit liquid staking derivatives such as staked ETH and mint the stablecoin eUSD against them.
What happened to Lybra V1?
Lybra published a migration guide for moving holdings from V1 to V2, and announced rewards for users who migrated in the first week of the V2 mining program. Anyone with funds in V1 should check the official Lybra channels for current instructions.
What is eUSD?
eUSD is an interest-bearing stablecoin minted against staked-ETH collateral. Its yield is linked to the staking rewards earned by that collateral, rather than coming from a separate lending market.
What is the LBR token?
LBR is the governance token of Lybra Finance and is issued on Ethereum. One price tracker lists it with a market cap of only tens of thousands of dollars, which indicates low liquidity.
Is Lybra V1 safe?
Any CDP protocol carries smart-contract, collateral-price and stablecoin depeg risk. DefiLlama lists two audits for the protocol, but the reports are not described, and the V1 deployment is a legacy product with a small TVL.
Compare
Lybra V1 alternatives
crvUSD is Curve Finance's overcollateralized, USD-pegged CDP stablecoin on Ethereum, minted against crypto collateral by DeFi borrowers.
Liquity V2 is an immutable Ethereum borrowing protocol where users set their own interest rate and mint the BOLD stablecoin against ETH, wstETH or rETH.
Frankencoin is an over-collateralized, oracle-free Swiss franc stablecoin (ZCHF) on Ethereum for borrowing, saving and payments.
Liquity V1 is an immutable Ethereum protocol offering 0% interest LUSD loans against ETH collateral, for DeFi users comfortable with liquidation risk.
Sky Lending is the borrowing and savings side of the Sky ecosystem on Ethereum, built on the USDS stablecoin, the upgraded version of DAI.
Angle is an over-collateralized stablecoin protocol that mints agEUR and offers perpetuals, yield deposits and borrowing for DeFi users.
Same category
More CDPs
Sky is the rebranded MakerDAO, a DeFi protocol issuing the USDS and DAI stablecoins, governed by SKY token holders, for DeFi users and stablecoin holders.
Liquity is an Ethereum borrowing protocol where ETH holders mint USD stablecoins (LUSD, BOLD) against their collateral, with the LQTY token for incentives.
Reservoir Protocol issues the rUSD stablecoin and yield assets srUSD and trUSD across 17 chains, for DeFi users seeking stable yield.
River Omni-CDP is a multi-chain CDP protocol that issues the satUSD stablecoin against cross-chain collateral without bridging, for experienced DeFi users.
Felix is a Hyperliquid protocol that issues the feUSD stablecoin against collateral, with lending and perps for DeFi traders.
Bima is a Bitcoin-backed credit protocol offering fixed-term collar loans and the USBD stablecoin for BTC holders who want liquidity without selling.
Same chain
More on Ethereum
Lido is a liquid staking protocol where users stake ETH and receive stETH, a reward-earning token usable across DeFi, governed by LDO holders.
Aave V3 is a non-custodial DeFi lending protocol on 21 chains where users earn interest on deposits or borrow against collateral.
Uniswap V4 is the latest Uniswap DEX version with hooks and concentrated liquidity, running on 22 chains for self-custody token swaps and liquidity provision.
Uniswap V3 is a non-custodial decentralized exchange protocol for token swaps and concentrated liquidity provision across 40+ chains.
DeFi Saver is a non-custodial tool for managing and automating leveraged lending positions across major DeFi protocols on Ethereum and layer-2 networks.
OKX is a major centralized crypto exchange for spot and derivatives trading, earn products and a Web3 wallet, with its own OKB token.
How we checked
Sources
- 1.defillama.com/protocol/lybra-v1
- 2.medium.com/@0xgreythorn/an-exploration-into-lybra-finance-an-lsd-fi-stablecoin-protocol-470e8a74d71c
Last updated . Spotted an error? Tell us and we will correct it.