A Lyrebird USDL stablecoin reverse liquidity pool will launch on Flamingo between 9:00 and 10:00 a.m. (UTC) on Monday, May 9. The FRP-FLM-USDL pool will be seeded with 50,000 USDL tokens, allocated from the genesis mint of 10 million, paired with an equivalent value in FLM.
Lyrebird launched its first token, LRB, in April 2022, with a reverse pool seeded with 5 million LRB paired against FLM. USDL is an algorithmic stablecoin that utilizes arbitrage in connection with the LRB token to maintain USDL’s peg to the US dollar. More information about the arbitrage mechanism can be found in previous Neo News Today coverage.
As the USDL will be placed in a reverse pool, liquidity providers will receive LRB as a reward, not Flamingo’s FLM reward tokens. Lyrebird is distributing LRB rewards instead of USDL to incentivize growth in use of the stablecoin. The intention is for users to burn LRB to mint USDL as demand organically increases. Ten million LRB have been apportioned for the USDL reverse pool, which will be released over the next ten years.
After the USDL pool is live on Flamingo, Lyrebird will release Arby v1.0.0. Arby is an open-source bot designed to automate arbitrage activity. Once the code is released, users are encouraged to run the arbitrage bot. Lyrebird states, “Having a large number of independent arbitrageurs is crucial for the health of the Lyrebird protocol.”
More than 350 unique Neo wallets currently hold or are staking LRB. Since LRB’s launch, over 700,000 LRB have been staked on the Lyrebird platform, and an excess of US $1 million in liquidity has been provided to the FRP-FLM-LRB pool on Flamingo.
Lyrebird also distributed its first locked airdrop to wallets that have staked LRB. Each wallet received 20% of the staked LRB, resulting in an airdrop of approximately 150,000 LRB. This airdrop is locked for one year to incentivize long-term holding. Recipients can see the amount received and time remaining on the lock on Lyrebird’s Claim page.
Looking forward, the Lyrebird development team will update the LyrebirdToken contract so that staking rewards are automatically distributed daily.
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