While Ethereum is the first and still most popular smart contract and custom token platform, it lacks features required for payment applications running in real world retail and banking environments such as instant transaction confirmations, very high scalability (tps), instantly unlocked sender balances, and more. See vs. Bitcoin, Ethereum, Monero, and all other PoW, singleton blockchains for basic differences between Ethereum and Lyra.
Ethereum allows to create very flexible, fully customizable (programmable) smart contract based tokens, at the expense of PoW and complexity that requires special programming skills. Lyra smart contracts are “pre-programmed” for specific real world use cases, and therefore tokens can be created without coding by any user within seconds.
Ethereum transactions with custom token are expensive, therefore they cannot be used in real world business applications such as closed loop payment system (loyalty reward management). Lyra transaction are inexpensive, and Lyra design allows zero transaction fees for selected transaction scenarios.
Ethereum blockchain is open to the public view so all transactions are traceable which allows to find the senders and recipients using special tools. Lyra is designed to support privacy transactions - see Privacy Transactions on Block Lattice for more info.