We are excited to announce that the LYRA token will launch on Optimism next week with a one-month liquidity mining program for the LYRA/ETH pair. This will be the first token launch natively on layer two, allowing users to claim LYRA at a fraction of the cost that would be incurred on L1.
Lyra’s Ignition phase has been an overwhelming success, migrating over $200m liquidity to Optimism and kickstarting the era of L2 native DeFi. Our ignition traders have stepped up with $20m of volume flowing through the protocol last week. This has been a huge effort from the Lyra team, but we didn’t do it alone. Last week, we gave back to everyone who’s helped us along the way, our discord community, liquidity providers and traders.
Now it’s time to put LYRA into the hands of the community, but first, let’s go through the purpose of the LYRA token.
The LYRA token
Lyra’s mission is to be an open, community owned protocol for trading options. Introducing the LYRA token is an important milestone on this journey as we move toward community ownership.
Initially, LYRA will have three use cases:
- Governing the protocol via election of the Lyra Council.
- Securing the platform as collateral in the Security Module.
- Bootstrapping the network through trading and liquidity incentives.
The vision for the LYRA token stretches much further than this though. As we move toward partial collateralization in v2, LYRA will become the centrepiece of a composable volatility engine, facilitating efficient transfers of risk throughout DeFi.
LYRA stakers will also have access to a LYRA denominated interest rate on their liquidity pool funds and short options collateral. This rate will increase in proportion with the lockup length and create a positive externality, driving governance tokens into the hands of power users who are aligned with its success over the long term. Over the coming weeks, more information will be released about this novel mechanism.
Launching LYRA to Optimistic Ethereum
After our most engaged community governance process to date, LEAP-12 was passed by the Lyra Council yesterday, giving the green light for an Optimistic launch. Let’s run through the details now.
On Tuesday the 14th of December at 00:00 UTC, 67m LYRA will be available to claim. We start with a breakdown of the 64m LYRA that will be available to claim on Optimism.
Lyra’s Security Module lives on L1, to help protect the protocol against the platform risk of Optimism which is still in its infancy. SM stakers will claim their LYRA on L1.
LYRA Liquidity Mining
A successful token launch requires a liquid market. Lyra will commence a one-month liquidity mining program for the LYRA/ETH pair on Optimistic Uniswap. This program will incentivise full range liquidity to minimise the chance of exploits that have recently affected other protocols. As protocols continue to migrate to Optimism, we will be investigating other sustainable methods for long term liquidity management.
Incentivized Uniswap Pool (OΞ)
Fee Tier: 1%
Amount: 1,000,000 LYRA
Start: 14 December 2021 00:00 UTC
End: 14 January 2022 00:00 UTC
Bridging LYRA to Mainnet
While an Optimistic token launch enables far lower costs for users, we can’t make the assumption that all users wish to stay on Optimism. With withdrawal periods currently at one week, we need a better solution for our users.
Lyra has partnered with Celer to make the LYRA token available on their cBridge, enabling fast transfers between Optimism and mainnet. The Lyra DAO will seed liquidity on Optimism and Ethereum Mainnet for this bridge and will seek to support additional bridging infrastructure over time. We will be releasing a guide on how to bridge when we launch the token.
Lyra is an open protocol for trading options built on Ethereum. Lyra allows traders to buy and sell options that are accurately priced with the first market-based, skew adjusted pricing model. Lyra also quantifies the risks incurred by liquidity providers and actively hedges them, encouraging more liquidity to enter the protocol.
Stay tuned for more important updates, key date announcements, and exciting opportunities by following us on Twitter.
Join the Lyra community on Discord to get involved; provide early feedback, be the first to learn about new opportunities with Lyra, and be a part of building the future of DeFi.