Lyra introduces LDX token, adds yield-bearing derivatives

Decentralized options protocol Lyra Finance unveiled a token revamp plan.

It has introduced the LDX token, which will function as the native currency of the so-called Lyra Derivatives Network and is set to roll out in the third quarter of this year. The existing Lyra tokens will be migrated to the new one.

There is also an LDX airdrop planned that will reward traders and yield farmers, incentivizing them to add to the liquidity and adoption of Lyra products.

The airdrop employs a points system, distributing LDX pro-rata in four-week rounds, lasting for at least three rounds over a period of 12 weeks, according to the Lyra team. It took a snapshot of existing token holders on May 8, whose balances will convert 1:1 to LDX.

The platform has also introduced a product that tokenizes yield-bearing derivatives — initially focusing on basis trades — followed by covered call strategies for liquid restaking tokens on EigenLayer. This will allow users to deposit LRTs issued by protocols like EtherFi (eETH) and Swell (rswETH) to earn yields. The protocol will tokenize strategies across LRTs, packaging them in the form of ERC-20 tokens.

Lyra Finance was originally launched as an on-chain options trading protocol that employs market maker vaults — asset-specific pools funded by liquidity providers using stablecoins in exchange for a share of the trading fees.

The team also developed its own optimistic Layer 2 on Ethereum using the OP Stack — an open-source and modular software stack developed by OP Labs. It raised $3.3 million in a seed funding round led by venture capital firms Framework Ventures and ParaFi Capital.