Across the three trading rounds within the Ignition period, a total of 27,000,000 LYRA tokens (2.7% of total supply) will be distributed to LPs in proportion to provided liquidity.
Liquidity providers are the backbone of the Lyra ecosystem. When providing liquidity to the Lyra protocol, your funds are providing liquidity to the options automated market maker. That is, funds are being used to buy, sell, and collateralize the options traded on Lyra. Your funds are therefore exposed to both potential gains and losses from options trading undertaken on the platform.
To become a liquidity provider, you must deposit sUSD to one of the option market pools (either ETH, LINK, or BTC). Before doing so, make sure you have read and understand the following: