Simple Summary

Buy back $LYRA with part of the fees generated by the protocol since the launch of Lyra v2.

Abstract

This proposal aims to utilize part of the fees generated to buy back $LYRA tokens before the snapshot and migration to the new $LXD token for the LyraDAO. The tokens bought will be held by the DAO until new $LDX tokenomics are finalized and approved.

Motivation

$LYRA token has not been able to capture the value of the upgrades and scope extension provided on Lyra V2. The motivation is to redirect part of the generated fees to capture the value at current prices.

Specification

The proposal aims to assign up to 150,000 USDC for $LYRA token buy backs. That amount represents approximately 16.1% of the 931,000 $ fees generated by Lyra v2 at the time of this proposal.

• 150,000 USDC from the Security Module to be transferred from Lyra Chain to a wallet controlled by the DAO on Optimism.

• Buy backs will be executed on a daily basis during 9 days (April 29th to May 7th) by swapping USDC for $LYRA on Optimism.

• Maximum amount used for buy backs will be 17,000 USDC per day.

• Buy backs will be split to avoid high price impact. Maximum price impact will be 2.5% per swap.

• If there is some USDC left at the end of the buy back period it will be returned to the Security Module.

Rationale

This proposal aims to reflect the compromise of the DAO with their stakers and return part of the value accrued by the protocol to them.

The amount of 150,000 USDC is in line with similar discussions about assigning 20% of the fees to stakers.

The maximum daily amount of 17,000 USDC for buy backs aim to use a uniform distribution for the buy backs.

Test Cases

Test cases are required for code-related proposals (i.e. non treasury actions).

Copyright Waiver

Copyright and related rights waived via CC0 .