Liquidity Rounds
This page explains how rounds work in Lyra from the perspective of a liquidity provider
In Lyra, liquidity is provided in "rounds". A round is a fixed duration period in which no funds can enter or exit. When the first expiry is added, it sets the duration of the round. For example, assume it is the 1st of the month, with no active expiries. If an expiry is added on the 28th of the month, a 28 day round has just been initiated. It is not possible for any funds to enter or exit until the end of this 28 day period.
Importantly, the first board added defines the maximum duration of the round. This means LPs can have confidence that their funds cannot be locked for longer than this time.


Rounds exist because allowing LPs to join and leave at any time is not trivial. In a swap based AMM like Uniswap, it is straightforward to compute exactly how much of the pool an LP is entitled to withdraw. However in Lyra, LP funds collateralise options whose value changes over time. This means that in order to allow an LP to freely enter/exit, the unrealised PnL of the entire pool must be computed, which can also make the system gameable.


If you deposit to the Liquidity Pool during a round, your liquidity will not become active until the next round begins. You will not earn any trading fees or incentives during this waiting period. You may withdraw the liquidity at any time before the next round begins.

Signalling Withdrawal

If you wish to withdraw your liquidity during a round, you can "Signal Withdraw". This indicates to the system your liquidity should not be used after the conclusion of the round. Signalling withdrawal will allow you to withdraw at any time after the conclusion of the current round. If you decide you would like to stay in the Liquidity Pool, you can unsignal withdraw before the current round ends.


After a round finishes, it is possible to withdraw liquidity before the next round begins.
Last modified 1mo ago