When users sign in with their email or Google account for the first time, they create an embedded wallet. This is a self-custodial wallet within the Lyra app, powered by Coinbase WaaS (Wallet as a Service).
Multi-Party Computation (MPC)
The Lyra Wallet is secured by MPC (Multi-Party Computation) technology. For enhanced security, your private key, containing your assets (including positions), is split into two shares:
Share 1: Stored by Coinbase
Share 2: Stored on your device, encrypted by your wallet password
Lyra stores backup data to help you recover your key share on new devices but never sees the key share or password itself.
To sign a transaction, you need both key shares on the lyra.finance domain. This means that only someone with your email or Google account login and your Lyra Wallet password can sign any transactions.
The first time you sign in, you are also instructed to securely store your complete private key. You can import the private key into another wallet, like MetaMask or Rabby, at any time. For instructions, see this guide.