Lyra Finance is now offering liquid restaking token holders the opportunity to earn extra yields from automated trade strategies. This new feature allows token holders to automate and package any yield-bearing strategy into an ERC-20 token, which can be used elsewhere. The initial offerings include tokenizing basis trade and later adding a covered call strategy.
Through a partnership with liquid restaking protocols Swell Network and Ether.Fi, Lyra Finance enables holders of rswETH and eETH tokens to earn an annualized percentage yield of 10% to 50%. This is a significant increase compared to the 10-year yield of 4.47% on U.S. treasuries, making it an attractive option for investors seeking higher returns.
Liquid restaking protocols allow users to lock their cryptocurrencies in a blockchain network and receive liquid restaking tokens (LRT) in return. With Lyra Finance, users only need to deposit their rswETH and eETH tokens and mint a yield-bearing derivative token that automatically executes a predefined yield-bearing strategy on-chain. This allows any yield-bearing strategy to be automated and packaged into an ERC-20 token, which adds a new layer of flexibility and utility to the tokens.
Lyra Finance believes that tokenized derivatives yield will play a crucial role in the growth of crypto economic markets and the development of sustainable networks. The platform aims to capitalize on the increasing value locked in restaking protocols, which is expected to reach $30 billion in the next year. By providing a new layer of derivatives yield for stakers and restakers, Lyra Finance distinguishes itself as a unique protocol.
Initially, users can tokenize basis trade, a market-neutral strategy that takes advantage of discrepancies in two markets. This allows them to earn additional yield on top of the restaking yield and ETH yield generated by their tokens. Tokenized covered calls will be introduced later, offering users the opportunity to sell ETH calls using their liquid restaking tokens as collateral. While it involves more risks, it provides USDC yield in return and further diversifies the income opportunities for token holders.
Overall, Lyra Finance’s offering of automated trade strategies through tokenized derivatives yield presents a game-changing opportunity for liquid restaking token holders to maximize their yields and participate in the growth of crypto economic markets.