To address insufficient market maker incentives in Lyra's decentralized options protocol, several solutions can be implemented. First, introduce dynamic fee structures that reward market makers for providing liquidity during volatile periods, ensuring sustainable profitability. Second, implement a staking mechanism where $LYRA tokens are locked to access enhanced maker rewards, aligning long-term interests. Third, establish a buyback-and-earn model, redirecting trading fees to repurchase $LYRA, boosting token value and incentivizing participation. Fourth, partner with quant funds and prop shops to enhance institutional liquidity, reducing reliance on unsustainable incentives. Finally, optimize the AMM algorithm to minimize impermanent loss, making market making more attractive. These strategies collectively enhance liquidity, profitability, and engagement for market makers in Lyra’s ecosystem.