We’re thrilled to announce the beginning of Ignition, a 6-week journey to launch the LYRA token and transform Lyra into DeFi’s volatility engine. Beginning this Friday the 29th of October, 5.4% of all LYRA will be distributed to Lyra’s LPs, traders and stakers - all those who help us ignite the engine. The LYRA token will officially launch on December 14, with all rewards distributed on this date.
📍 Head to our revamped website to get started with Ignition and become a Citizen of Lyra.
Options are the most composable primitive, allowing holders to create any payoff. This flexibility makes them one of the most important building blocks of an open, programmable financial system. But this flexibility comes at a cost. Options have complex pricing and risk mechanics, which to date have led to low liquidity, poor pricing and unacceptable risks. Lyra was born to solve these problems. By designing a completely novel mechanism on a scalable optimistic rollup, we have been able to build the first AMM that both protects LPs and provides affordable pricing for traders. However, the job is not done.
We need to transform Lyra into DeFi’s volatility engine. This is a 6-week process known as Ignition, introducing the LYRA token to the world over three exhilarating trading rounds. LYRA will be distributed to all those who help ignite the engine. Let’s run through each group individually now.
It all starts with sUSD. Lyra depends on sUSD for collateral and trading. With only 18m circulating on Optimism, there simply isn’t enough to satisfy the demand to use Lyra. This is obvious when you look at the price of sUSD, it’s been trading above $1.10. That’s why we’re distributing 20M Lyra over the next 6 weeks to SNX stakers on Optimism. Read more here.
Security Module Stakers
Options trading is a risky endeavour and despite Lyra’s innovations, there are still risks to the protocol. That’s why we’ve designed a security module with the goal of securing Lyra’s traders and LPs in the event that the protocol becomes insolvent and cannot fulfil its obligations. 5M Lyra will be distributed to those who stake USDC in the security module. Read more here.
With sUSD in plentiful supply, Lyra will host 3 trading rounds, designed to attract DeFi’s brightest traders and LPs. The dates for these rounds are as follows:
Lyra Market LPs
To make these rounds successful, we need to channel liquidity into Lyra’s Market Pools. Liquidity providers are the backbone of the Lyra ecosystem, providing all the collateral for long options purchased by traders. That’s why Lyra Market LPs are receiving 27M Lyra across these three rounds. Read more here.
Once we have filled the Market Pools, Lyra’s traders need to be supercharged. Traders generate all of the activity on the Lyra Protocol and deserve to be rewarded for their crucial function. Up to 3.6M Lyra will be distributed to users who trade on Lyra over the 3 rounds. These rewards will reduce the cost of accessing the protocol and provide a direct incentive to increase volumes. Read more here.
For a full technical description of Ignition, please see LEAP-8.
Lyra is a protocol for trading options 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.