Lyrebird, an algorithmic stablecoin and synthetic coin protocol, has been tentatively scheduled to launch in March 2022. The team recently released a roadmap for Q1 2022 outlining various tasks. Among other goals, Lyrebird’s developers aim for LUSD to become the Neo ecosystem’s first native stablecoin.
Lyrebird’s Q1 2022 roadmap acts as a living document on the Lyrebird Discord server that will be updated with the completion of each task.
At the time of press, Lyrebird has received its smart contract audit from Red4Sec and is addressing the feedback. Further, various Lyrebird contracts have launched on Neo N3 TestNet and are undergoing testing. The team is also exploring methods to distribute LRB tokens to the most active users in the Neo ecosystem. LRB is the underlying asset that works in tandem with LUSD via arbitrage to maintain LUSD’s US $1 price peg.
The Lyrebird team intends for supply and demand processes to keep the peg of the LUSD stablecoin at US $1, with arbitrageurs taking advantage of price discrepancies between LRB and LUSD to bring the system into balance. For this system to work, and for Lyrebird to succeed, a large portion of LRB needs to be in circulation, ensuring sufficient liquidity to maintain the protocol.
The Lyrebird team is collaborating with Flamingo developers on a unique way to distribute LRB to the most active users on the Neo network. Flamingo is implementing a new reverse pool mechanism into Neo’s DeFi platform that will reward liquidity providers with LRB instead of FLM tokens.
Lyrebird’s development team believes rewarding liquidity providers will help encourage sufficient liquidity in the LRB and LUSD pools on Flamingo. The more liquidity in an LP, the less likely a whale can destabilize the price of LRB and remove LUSD’s peg to the dollar.
Any LP on Flamingo will be eligible for the airdrop if this becomes the method of choice. LRB and LUSD tokens will likely pool against FLM tokens, but these plans could still change.
Looking forward, Lyrebird developers will continue to seek to ensure there is sufficient liquidity in LRB and LUSD pools on Flamingo. The team is also exploring an initial DEX offering to raise liquidity for the liquidity pools.
Lyrebird’s Q1 2022 roadmap will update in real-time at the link found below: