The Lyrebird algorithmic stablecoin protocol is launching the dollar-pegged token, USDL, and the stabilization utility token, LRB, on Neo N3 in late April 2022. There will be no public token sale, but 50% of the initial LRB token supply will be released via airdrops, Flamingo reverse liquidity pool rewards, and other methods.
Unlike traditional stablecoins, USDL isn’t backed by specific collateral such as fiat currency. Instead, bots and arbitrageurs maintain the peg to the US dollar by monitoring supply and demand between two assets and taking advantage of asset price discrepancies. In Lyrebird’s case, the LRB token is the underlying asset used to mint or burn the USDL stablecoin. More information about the arbitrage mechanism can be found in previous Neo News Today coverage.
Following the launch of Lyrebird, LRB holders will be able to stake their tokens and earn a proportionate reward from transaction fees accrued on the LyrebirdAviary contract. To reduce the probability of a flash crash, LRB will have a 30-day unstaking period to incentivize holding LRB for the long term.
Users who stake LRB will be able to participate in governance processes that impact the development of the protocol and direction of the project. Initially, the outcome of any vote will be implemented and seen through by the Lyrebird team. However, the development team intends to emulate the NeoBurger model and transfer ownership of its smart contracts to the collective LRB stakers.
LRB Token Airdrop
Lyrebird was tentatively scheduled to launch in March 2022 but postponed while legal due diligence was completed. Lyrebird will not announce the airdrop schedule or eligibility details before they occur. The initial LRB token supply is 100 million, which will be distributed accordingly:
- Community distribution: 50 million LRB
- Stability Reserve: 20 million LRB
- Team allocation (one year lock): 20 million LRB
- Project development: 10 million LRB
Twenty million LRB from the community distribution allocation will go into reverse liquidity pools. Reverse pools allow users to stake LRB or USDL and a DeFi platform’s token to a pool and, in return, receive LRB or USDL token as a reward. Lyrebird will launch an FRP-FLM-LRB reverse liquidity pool on Flamingo, followed by an FRP-FLM-USDL pool when LRB achieves relative price stability.
Another ten million LRB from the community distribution allocation is reserved for airdrops. All airdropped LRB tokens will be locked for a distribution period of one year to incentivize long-term holding. Plans for the final 20 million community distribution LRB will be released later.
The full announcement can be found at the link below: