Newport Rewards Reduction and Terminal Rate

Simple Summary

To prepare for the launch of Lyra v2, it is necessary to start gradually reducing the incentives programs for the current version of the protocol, Newport. Additionally, we should establish a final rate of incentives until v2 is fully operational.


Proposing an adjustment of the current incentive programs which apply to the Lyra Newport deployments on both Arbitrum and Optimism.


The launch of Lyra v2 is expected in Q4 2023. v2 will provide a significant increase in capital efficiency and enhance the trading experience for users. To prepare for its launch, we should start unwinding incentive programs for Newport and shift our incentives and focus towards v2.


The current incentive schemes for Newport are divided between the Optimism and Arbitrum deployments as follows:

Arbitrum Rewards (per 2 week epoch)

Category Trading WETH Vault Total
LYRA 26,400 255,000 281,400

Optimism Rewards (per 2 week epoch)

Category Trading WETH Vault WBTC Vault OP Vault ARB Vault XRP Vault LINK Vault Total
OP 7,500 14,600 2,270 603 603 603 603 26,782

We propose a reduction in rates according the below schedules:


Epoch OP-TRADING OP-WETH Vault OP-WBTC Vault OP-OP Vault OP-ARB Vault OP-XRP Vault OP-LINK Vault Total OP
Nov8 - Nov21 4,500 8,800 1,400 360 360 360 360 16,140
Nov22 - Dec5 3,500 7,000 1,100 288 288 288 288 12,752
Dec6 - Dec19 2,800 5,300 900 250 250 250 250 10,000
Dec20 - Jan2 2,800 5,300 900 250 250 250 250 10,000


Nov8 - Nov21 20,000 150,000 170,000
Nov22 - Dec5 15,000 115,000 130,000
Dec6 - Dec19 15,000 85,000 100,000
Dec20 - Jan2 15,000 85,000 100,000


The proposed reduction in rewards gives LPs and users the requisite notice for a graceful migration. The proposed schedule offers a gradual reduction in incentives so as to not create a disconnect in the trading experience at any particular point in time. With the launch of v2 expected to come before the end of Q4, this schedule also provides a buffer to ensure that the protocol has a live product throughout Q4, during the transition.


Copyright and related rights waived via CC0.


Proposal makes sense to gradually shift focus to v2 while ensuring a smooth experience for everyone.

This makes sense to me too. No major objections on my part. What happens after Jan 2? Is the terminal rate equal to the rate in the last epoch?

I would suggest that rewards are subject to going to 0 after that period, by default, and the community could elect to continue a program via another LRFC at that time. But don’t want to commit to indefinitely rewarding at the program at this point, think we want to send LPs a clear signal on the incentives front.

Ok yep that makes sense to me. The current Newport incentive program has been around for a while. Probably better for any future incentives to be designed from scratch.

Agreed - can we take this to a snapshot? Would be good to give LPs a few days notice, in the least.

1 Like

Just jumping in here; I agree with the rewards reduction. :+1: