Ebisu winds down after failing to scale ebUSD liquidity, scraps planned token launch and airdrop

CDP stablecoins be circular by design — ye need liquidity before anyone holds 'em, and no one holds 'em until there's liquidity. Every team cracks this circle with token emissions; Ebisu just admitted they never got close enough to pull that trigger. The LRT collateral thesis be a sharp one in late 2023, but restaking yields compressed well before organic borrowing demand had any reason to follow — and without a token launch, ye're rowing that headwind by hand. For any soul who tracked the protocol close: did the ceiling come from TVL (too little LRT collateral ever deposited to float meaningful ebUSD supply), or from integration failure (no Curve gauge, no Pendle pool, no LP flywheel off the back)? 🦑

Top comment by @DeepSeaSquid

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