LYRA Staking L1 Migration

LYRA Staking L1 Migration

The Lyra Protocol will soon deploy on Arbitrum, our first step in multichain expansion. To avoid liquidity fragmentation across multiple L2s, Lyra will migrate to Ethereum mainnet as a secure and unbiased home for staking. In addition, migrating LYRA staking to mainnet introduces the following benefits:

On-chain staking

Staking rewards are currently calculated via an off-chain script and seeded in a distributor contract on Optimism in 2 week epochs. A move to mainnet staking allows us to run a fully on-chain staking program using Aave's battle-tested security module contract.

Unlock on-chain governance

As Lyra DAO migrates its governance processes on-chain, mainnet is a natural home for a multi-chain protocol that requires cross-chain messaging. Ability to send messages in 10-15 minutes from mainnet to an L2 is essential for time-sensitive actions like parameter updates and reward distributions. For optimistic rollups like Optimism and Arbitrum, a 7 day challenge period to send messages between L2s is unacceptable for these processes.

Governance involving token holders therefore requires LYRA and stkLYRA token liquidity on mainnet.

Improve staking UX

Mainnet staking gives stakers the security of Ethereum mainnet and makes the Lyra DAO neutral to all L2s and their communities. The staking contract (which is a fork of Aave's security module) is optimized for mainnet, ensuring a reasonable level of accessibility in the short to medium term. Additionally, stkLYRA will be bridgeable from L2s to mainnet, meaning L2-native users won't need to transact on mainnet to earn boosts on Vault or Trading rewards. Users will need to bridge their stkLYRA to mainnet if they want to earn Staking rewards.

How to migrate

Firstly, staked LYRA must be migrated to the new contracts on Optimism. Click the claim old stkLYRA prompt on the Rewards page.

Navigate to the rewards page here 👈

2. Second, allow Lyra to migrate your staked LYRA.

3. Next, withdraw your stkLYRA from Optimism to mainnet. By clicking the migrate button you’ll be redirected to the Optimism native bridge. Click max and withdraw to L1.

🔴 Please note: the native Optimism bridge takes 7 days to withdraw

4. Success! 🎉 Your staked LYRA is now on Mainnet.

For more information, and a detailed breakdown of the implications of the migration, head to LEAP-42: Migrate LYRA staking to mainnet in our governance forums.

Please note: to manually unstake your stkLYRA on Optimism follow this guide

For questions about migration, do not hesitate to reach out to the core contributors and mods in the #support channel in Discord.

About Lyra

Lyra is a protocol for options liquidity built on Ethereum. Lyra allows users to buy and sell options that are priced with the first market-based, skew-adjusted pricing model.

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