After a month of unincentivized activity on the new Avalon release of the Lyra protocol:
- LPs have generated 2.8% returns on capital deposited on day 1
- $20m+ notional volume and $1m+ premiums have been traded
- Market-Maker Vault utilization has been consistently maxed out
It’s time to add some fuel to the volatility engine through a mix of incentive and staking programs designed to increase vault liquidity and trading activity. As of 01:00 UTC time on Wednesday the 3rd of August, the following changes to emissions programs will come into effect:
Lyra Staking (L2)
LYRA token holders can now stake their LYRA for stkLYRA here. stkLYRA holders will be entitled to:
- A pro-rata share of 15,000,000 stkLYRA in staking rewards annually
- Market-Maker Vault rewards boosting
- Unstaking stkLYRA will initiate a 14-day cooldown period during which users get 0 staking rewards and 0 boosted Market-Maker Vault rewards.
- Staking rewards will be distributed as a mix of stkLYRA (vesting 182 days after earning) and $OP (vesting at the end of each 2-week epoch).
Market-Maker Vault (MMV) Rewards
- Lyra MMV liquidity providers (LPs) will be entitled to a share of 37,500 $OP tokens per 14-day epoch. This is subject to change from epoch to epoch at the Council’s discretion with 72 hours notice via a discord announcement.
- LPs’ share of the $OP rewards will be determined by both their sUSD share of the pool and their stkLYRA boost (if any) applied to their sUSD share. Boosts are capped at 2x their sUSD share of the pool.
Please note that holding stkLYRA is not a requirement for receiving $OP rewards if you are a MMV LP, however, your share of the rewards may be diluted without owning stkLYRA. Boosting mechanics do not apply to sUSD returns generated from trading activities.
USDC Security Module (L1)
As of Friday the 12th of August 00:00 UTC time, the USDC Security Module will no longer earn LYRA token rewards. If you are a USDC Security Module LP, you can access the interface to unstake here. Please note that the 10 day cooldown period will always apply to funds in the contract, so it is advisable to withdraw ASAP.
LYRA Security Module (L1)
From 00:00 UTC time August 2nd, LYRA Security Module rewards (L1) would cease, and instant withdrawals (with no cooldown period) will be enabled. If Security Module stakers wish to participate in L2 staking programs, they can migrate via the Optimism bridge. You can access the interface to unstake here.
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.
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