The first time you deposit tokens to Lyra, you will be prompted to ‘’Enable Spending’’. This will give the Lyra smart contracts permission to deposit tokens into the Lyra Protocol.

The message you are asked to sign in your wallet is a so-called permit, a new approval method that improves the user experience in numerous ways.

The original method, where users are required to grant permission to a smart contract by sending a transaction, one for each approval, is inefficient and costly.

Permits, on the other hand, are signature-based approvals. Users can sign multiple messages offchain that will be included in their transaction. This allows for:

Permits also strengthen security with options such as time-bound approvals. Learn more about permit signatures and their key features here.