LEAP-8: Launch LYRA Token

Author	mjs, Nick Forster, Sean Dawson, Domrom, SteveNX, Burt Rock
Status	Implemented
Created	2021-09-28

Simple Summary

A token distribution plan for Lyra's "ignition phase" between October 29 and January 7, including the official token launch on December 14.

Abstract

This LEAP proposes distributing 42,000,000 LYRA (4.2% of the total supply) between October 29 and December 10 (pre-ignition) to the following groups:

Group	Reward	Notes
Lyra Market LPs	15,000,000 LYRA	Split between all markets
Lyra Traders*	Up to 2,000,000 LYRA	Split between all markets
Lyra Security Module Stakers	5,000,000 LYRA	USDC staking on L1
SNX L2 Stakers (pre-ignition)	19,000,000 LYRA	Average debt on L2
SNX L2 Stakers (retroactive)	1,000,000 LYRA	Retroactive average debt on L2

All rewards earned during pre-ignition will be distributed on December 14 when the token is oficially launched. From December 10 to January 7 (post-ignition), a further 18,000,000 LYRA (1.8% of the total supply) will be distributed to the following groups:

Group	Reward	Notes
Lyra Market LPs	12,000,000 LYRA	Split between all markets
Lyra Traders*	Up to 1,600,000 LYRA	Split between all markets

Trading rewards for the post-ignition period will be distributed on January 7. Market LP rewards for the post-ignition period will be distributed on December 14 with the token launch, since the distribution will be known on December 10*.

Tokens will be claimable on Ethereum Mainnet. Those who have earned an amount of less than 1,000 LYRA during the pre-ignition phase or trading competition will be given a choice to claim on either mainnet or OE after the official token launch. LYRA will have the most utility on mainnet however, we recognize that gas costs may be prohibitive for claiming smaller amounts there.

To be able to claim rewards, an address must have earned at least 1 LYRA. This should discourage airdrop farming and minimise distribution costs for the DAO. All tokens must be claimed within one year, unclaimed tokens will be returned to Lyra's treasury for future use.

Motivation

A successful LYRA token launch requires a sufficient % of supply circulating on launch day, a diverse group of token holders, and more sUSD on L2. This LEAP aims to ensure that all of these requirements are met.

Specification

Overview

There will be two trading rounds in the "pre-ignition" phase:

Round	Beginning	Ending
1	November 5	November 19
2	November 19	December 10

There will be one trading round in the "post-ignition" phase:

Round	Beginning	Ending
3	December 10	January 7

Rationale

By having two pre-ignition trading rounds, we allow LPs who missed the first round another chance to earn rewards before the token is launched. The total amount of trading rewards must be significantly less than the LP rewards to accommodate for the capital inefficiency of the system.

Users who have staked SNX on L2 already have bootstrapped the network by providing crucial sUSD liquidity. By requiring that these stakers also interacted with the Lyra protocol and/or liquidity mining programs, we avoid rewarding idle L2 stakers.

Distributing the post-ignition market LP rewards on launch day will increase the circulating supply significantly and should support accurate price discovery.

Technical Specification

Liquidity and trading rewards for each round are grouped together, since the latter depends on the former. The security module and SNX staking programs are independent of the trading rounds and addressed separately.

The Council has the right to delay the start of trading round 1 (and potentially alter other rounds), in the event that the ETH wrapper has not been deployed. Exact times for each trading round will be provided at least 48 hours before it starts.

1. Trading Round 1 (November 5 - November 19)

Group	Rewards
Lyra Market LPs	6,000,000 LYRA
Lyra Traders*	Up to 800,000 LYRA

2. Trading Round 2 (November 19 - December 10)

Group	Rewards
Lyra Market LPs	9,000,000 LYRA
Lyra Traders*	Up to 1,200,000 LYRA

3. Trading Round 3 (December 10 - January 7)

Group	Rewards
Lyra Market LPs	12,000,000 LYRA
Lyra Traders*	Up to 1,600,000 LYRA

4. Security Module (November 2 00:00 UTC - January 7 00:00 UTC)

Group	Rewards
Lyra Security Module Stakers	5,000,000 LYRA

The security module will be deployed onto Ethereum L1 and allow users to stake USDC to earn LYRA.

5. SNX stakers (October 29 00:00 UTC - December 10 00:00 UTC)

Group	Rewards
SNX L2 Stakers	19,000,000 LYRA

Those who stake SNX on L2 between October 29 and December 10 and meet at least one of the below eligibility requirements will receive a share of 19,000,000 LYRA. Once they have become eligible, they will begin receiving a share of LYRA in proportion with their debt relative to the total eligible debt. These rewards will be computed in 3 hour epochs.

Eligibility requirements:

Provided liquidity to Uniswap pools containing sUSD
Sold sUSD on Uniswap in a non synth pair
Traded options on Lyra
Provided liquidity to ANY Lyra Market Pool (i.e ETH or LINK)

6. Retroactive SNX stakers (September 13 00:00 UTC - October 10 00:00 UTC)

Group	Rewards
SNX L2 Stakers	1,000,000 LYRA

Those who staked SNX on L2 between September 13 and October 10 and meet at least one of the below eligibility requirements will receive a share of 1,000,000 LYRA. Once they became eligible, they will begin receiving a share of LYRA in proportion with their debt to the total eligible debt. These rewards will be computed in 3 hour epochs.