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Incentives

Note: The rewards page on the dApp has the up-to-date reward rates for each of the programs described below.
LYRA/stkLYRA mechanics are described in LEAP-26 and have been designed to reward protocol power users and long-term aligned participants with governance tokens. To that end, staking LYRA can be seen as an entry point to the Lyra ecosystem, providing 3 key benefits:
These programs are outlined below.

Staking Rewards

  • Users can stake their LYRA and receive Staked LYRA. Staked LYRA holders are eligible to earn LYRA and /or OP staking rewards, in proportion to their pro-rata Staked LYRA balance.
  • Staked LYRA and OP staking reward amounts are determined by the Council and calculated in fortnightly epochs.
  • Staked LYRA incurs a 14-day cooldown period.
  • Earned LYRA staking rewards will be escrowed for 182 days before being distributed as Staked LYRA.
  • OP rewards (if applicable) will be distributed at the end of each epoch.

Vault Rewards (and boosting)

  • Lyra Market Maker Vault (MMV) liquidity providers (LPs) are eligible for LYRA and/or OP rewards for providing sUSD liquidity to the pools.
  • Rewards are accrued and distributed in fortnightly epochs
  • Earned LYRA rewards (if applicable) will be distributed as Staked LYRA at the end of each epoch. OP rewards (if applicable) will be distributed fully vested.
  • The rewards rate is determined by the Lyra Council and can be updated per epoch
  • Rewards do not accrue to LPs after they have signalled to withdraw from the MMV
  • LPs in the Lyra market maker vaults (MMVs) will be able to boost their share of the rewards directed to the vault (either LYRA, OP, or both) in proportion to their Staked LYRA balance, with a maximum boost of 2x their sUSD pro-rata share of the pool. Details of the boosting mechanics can be found in LEAP-26.

Trading Rebates (and boosting)

Lyra traders are eligible for $OP and $stkLYRA trading rebates. All users are eligible for a minimum rebate of 5% of fees paid, and stkLYRA holders can boost their rebate to a maximum of 60%. Your boost is determined by tiers, which are detailed below:
stkLYRA
Rebate (%)
0
5
1,000
20
5,000
30
10,000
35
20,000
40
50,000
45
100,000
47.5
250,000
50
500,000
52.5
1,000,000
55
2,000,000
57.5
3,000,000
60

Short Collateral Rewards

  • Traders who sell options are also eligible for short collateral rewards, earning an interest rate on the collateral that is locked against options sold.
  • For options that are expiring in <= 4 weeks and >= 10 delta: traders will earn a rate of $0.15 (in $OP and stkLYRA) per short contract per day
  • The rates quoted in the below table are for ETH options expiring in 4 weeks or less. Longer-dated expiry contracts receive 50% of the quoted rates.
  • All other assets will be normalized to the ETH rates. E.g. if BTC is trading at $20,000 and ETH is trading at $2000, a 10-delta BTC option will receive $0.10 * (20,000/2,000) = $1 per contract per day in rewards.
Delta
Rate (per contract per day)
<10 or >90
0
10
$0.10
90
$0.25
10 < delta < 90
$0.10 + $0.001875 * (delta - 10)

LYRA-ETH LP Rewards

  • LYRA-ETH Uniswap v3 LPs are eligible for a share of 10,000,000 LYRA/year in rewards
  • The program incentivises positions via G-UNI contracts from Arrakis Finance, with a range periodically specified by the Council.
  • This range can be updated at the earliest of [once per month, 50% change in the spot price from the last update], with a minimum notice of 24 hours from the Council to LPs. Should the price of LYRA fall outside of the incentivized range, the Council can update the incentivized range immediately.
  • LPs can add liquidity to G-UNI contracts using our v1 dapp here.
Last modified 9d ago