Introducing $LYRA SM Staking

We’re thrilled to announce that Lyra’s Security Module now accepts deposits in LYRA on Layer 1 Ethereum. As outlined in LEAP-13, there will be a total of 3,000,000 LYRA distributed to stakers between today (January 14) and April 1, 2022.

Deposit $LYRA to the SM 👉 here

What is the Security Module?

The Security Module (SM) is designed to insure the protocol if it becomes insolvent and cannot fulfil its obligations to traders and/or LPs. If the Lyra Council approves a LEAP, funds staked in the SM may be slashed due to a shortfall event. Examples of a shortfall event include:

• Exchange solvency.
• Smart contract bugs.
• Other events that Lyra governance deems to have resulted in a shortfall.

The LYRA security module will launch on L1 and will allow staked LYRA to backstop the system alongside USDC. The security module must have more than one asset to mitigate black swan events and LYRA is a good choice as holders are likely to be engaged and aware of the protocol's risks. The LYRA Security Module will launch in conjunction with the start of an L1 LM program to accommodate the expected increase in demand.

Entering and Exiting the Security Module

Users can elect to deposit LYRA into the Security Module at any time and start to earn rewards immediately.

To withdraw from the SM, users can signal a withdrawal in the Lyra dApp which will begin a 10 day countdown. The 10 day cooldown period is to ensure that enough time is available to conduct an emergency governance procedure in the event of a shortfall. Liquidity will continue to earn rewards during the cooldown period.

Bridging LYRA to Layer 1

In order to access staking in the Lyra Security Module, you will need to bridge LYRA tokens from Optimism to Ethereum Mainnet.

Accessing a bridging protocol

To bridge tokens to and from Layer 1 (Ethereum Mainnet) and Layer 2 (Optimistic Ethereum) first navigate to a bridging protocol such as Celer. Options can be found in the wallet dropdown on the Trade and Earn tab in the Lyra dApp.

Bridge tokens from Optimism to Ethereum Mainnet

In order to stake on the LYRA Security Module, users who have LYRA on Optimism may choose to bridge tokens to L1 via Celer. Bridge tokens to L1 by selecting Optimism in the "From" dropdown and Ethereum Mainnet in the "To" dropdown and clicking "Transfer". Users may expect to wait up to 20 minutes and incur a fee when bridging between layers.

Depositing into the Security Module

Deposits to the Security Module can be made either directly on the USDC and LYRA pages underneath the Earn tab or via the modal on the Overview page.

About Lyra

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.

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