To make things clear at the beginning and the long story short, Lyra blockchain is a DeFi technology in its core, because it was designed, architected, and coded as a DeFi blockchain, and it was DeFi-driven even when it only existed on paper (the white paper to be more precise). The only missing thing was the word “DeFi” itself because it was not so hot back in January 2019 when Lyra white paper was first published. So let’s see how Lyra follows the DeFi pattern.
First of all, Lyra is designed as a multi-token blockchain, where each token represents a unique digital asset. In the LoyalShopper app, tokens represent reward points, discount codes, and other assets - depending on use case. Each merchant - LoyalShopper customer - receives a pair (at least) of its own branded tokens, which are freely tradeable on decentralized reward token marketplace. All these features are elements of a so-called closed loop payment system implemented on decentralized, permissionless blockchain. LoyalShopper is a DeFi application which is already implemented and waiting to be launched in production soon.
But if we go deeper into the history of Lyra, before even the idea of LoyalShopper solution came up, we can see that among the first lines of the original Lyra white paper there are following objectives:
Create a payment platform that provides “out of the box” basic features of modern payment processing networks such as privacy, real time authorizations, buyer-friendly fee structure, multi-currency support, special merchant transaction flows, and custom merchant tokens
Provide virtually unlimited scalability to enable TPS (transactions per second) rates competitive with existing “traditional” payment processing networks
Eliminate a prolonged locking of funds in user wallets (both payer and payee) caused by waiting for multiple “block confirmations”
Reduce the network latency that affects transaction authorization times to the levels acceptable by the payment industry
Provide built-in open banking features that would provide financial benefits to all stakeholders
Decouple the payment platform from any specific cryptocurrency
Next to the objectives, there is a base use case section, with the following use cases among others:
Receive a share of revenue from transaction processing
Make an instant, zero-fee payment to online or brick-and-mortar merchant
Instantly send crypto or fiat currency to any person using email address
Instantly exchange crypto or fiat currencies to other digital assets
These objectives and use cases show that Lyra is a pure DeFi solution. For example, Lyra DPOS voting process enables DeFi staking feature - locking a staking balance for earning an interest - but it is even better than many other DeFi staking solutions because it does not really require any locking (the staking balance can be used anytime) and it provides real dividends from real work (transaction processing fees from transfer, DEX trading, custom token, and NFT operations). Another option for DeFi staking are Lyra Collectible NFT which come with fixed and %% APR rewards.
Most Lyra objectives are already achieved, implemented in the Lyra blockchain, and available “out of the box” to Lyra developers and users. The use cases, however, require additional development of a decentralized liquidity pool - another term that became popular in conjunction with DeFi. Since creation of such a decentralized liquidity pool is not a trivial task, Lyra postponed its implementation to phase 2 of Lyra project. However, we have defined a path forward already on design and implementation - it is going to be done as a Multisig Deposit Vault for Decentralized Digital Asset Tokenization. Once implemented, the Multisig Deposit Vault will unlock a Pandora box of additional DeFi use cases defined in the original white paper such as DeFi staking of Bitcoin and other cryptocurrencies. We just need more time and support from people who want to participate in the DeFi revolution.