Traders on the Lyra Protocol earn rewards for opening and holding positions. The program is designed to reward traders who:
- Pay higher fees relative to premiums.
- Open shorter-dated positions, freeing up more liquidity in vaults.
- Hold a position until expiry, discouraging malicious sybil activity.
Each open position earns a daily score. A trader earns their share of a pool of rewards proportional to their total score at the end of each epoch.
Traders can also receive multipliers on their rewards by meeting certain conditions, such as staking LYRA, holding a top trader score for a day, or being referred by another trader.
1k stkLYRA or top 100 or verified referred
10k stkLYRA or top 50
50k stkLYRA or top 25
250k stkLYRA or top 10
- be the amount of fees in a trade
- be the premium of the trade
- be the number of days to expiry of the option
- be the number of days in the epoch
- be the daily multiplier
- be the total rewards distributed for the epoch
Define the fee score
Define the time score
Define a position's daily score
If a trader adjusts or closes their position, a time-weighted average of the daily position score is taken using the before and after
Define a user's daily score
Define a user's total score
A trader's rewards are proportional to their score relative to the sum of all
- Trading rewards are calculated off-chain and distributed via reward distribution contracts.
- Rewards are distributed in fortnightly epochs.