Abstract
Lira Financial aims to solve the problems of prior cryptocurrencies including mining rewards, farming
rewards, and liquidity provisioning. Mining equipment can be both costly and harmful to the environment, but mining remains of interest due to the opportunities afforded by it. As an easy alternative to mining rewards, we propose allowing users to participate with DEX Liquidity Pools. Another challenge remains to facilitate and maintain liquidity on decentralized exchanges. By nature, decentralized exchanges require liquidity for user participation, thus the responsibility is on the developers to provide it. Historically, developers created incentives aimed at
users to provide liquidity which can be outweighed by risk due to the subjectivity of impermanent loss. As a solution, we propose utilizing reserve funds capture liquidity to be used on the decentralized exchanges and held in custody independent from user possession. Additionally, a smart contract that provides the capability not only to mint, but also to burn tokens can promote scarcity by reducing the total supply. Together, the combination of these tokenomics may afford far superior benefits for the community within the decentralized venue. Allowing these functions to be amplified and dependent on
volume provides an ideal incentive to expedite adoption and foster new use case