Lyra Finance, a decentralized options protocol, has announced a token revamp plan, introducing the LDX token as the native currency of the Lyra Derivatives Network. Scheduled for release in the third quarter of this year, LDX will replace the existing Lyra tokens through a migration process.

To incentivize liquidity provision and adoption of Lyra products, the platform has announced an LDX airdrop program. Traders and yield farmers will be rewarded with LDX tokens based on a points system, distributed over multiple rounds lasting for at least 12 weeks. Existing token holders as of May 8 will receive LDX tokens at a 1:1 ratio.

In addition to the token revamp, Lyra Finance has introduced a new product that tokenizes yield-bearing derivatives, initially focusing on basis trades and covered call strategies for liquid restaking tokens on EigenLayer. This innovation allows users to deposit tokens issued by protocols like EtherFi (eETH) and Swell (rswETH) to earn yields, with the protocol tokenizing these strategies into ERC-20 tokens.

Originally launched as an on-chain options trading protocol utilizing market maker vaults, Lyra Finance has expanded its offerings to include yield-bearing derivatives. The platform operates on its own optimistic Layer 2 solution on Ethereum, developed using the OP Stack by OP Labs. Lyra Finance secured $3.3 million in seed funding from leading venture capital firms Framework Ventures and ParaFi Capital.