What is Lyra Finance (LYRA)?

Lyra Finance is an automated market maker for trading options on ERC-20 tokens on the Optimistic blockchain. 

Michael Spain and Nick Forster launched Lyra Finance in 2021. Since then, the protocol boasts $1.08 billion in trading volume, $33.6 million in TVL, and 165.7k in number of trades.

How Lyra Finance (LYRA) Works

Lyra Finance has two key user groups: liquidity providers and options traders. Liquidity providers deposit sUSD or USDC into one of the asset-specific Market Maker Vaults (MMV)  to receive trading fees, while traders use Lyra to trade options.

To price options, Lyra Finance uses the Black-Scholes model, which calculates the price based on the asset price, strike price, risk-free interest rate, time to expiry, and implied volatility. The AMM adjusts implied volatility for each strike and expiry based on supply and demand to converge to a market-clearing value. 

To protect existing LPs, various deposit/withdrawal circuit breakers are used. Moreover, a multisig under the control of two core contributors and five members of the council can approve deposits manually only when they have been signaled for a sufficient period of time. This is to make sure that the circuit breaker doesn't stop funds from entering the pool for too long. The goal is to keep the MMV close to delta-neutral, so fluctuations in PNL are reduced for LPs.

How Many Lyra Finance (LYRA) Tokens Are in Circulation?

LYRA token has a total supply of 1,000,000,000, among which 65,000,000 tokens are being circulated. 

How to Buy Lyra Finance (LYRA)

Consider investing in Lyra Finance (LYRA)? It only takes 2 minutes to create an account on Bitget and start trading LYRA. 

Check out the available LYRA trading pairs on Bitget!

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LYRAUSDT

Lyra Finance (LYRA) Resources

Official Website

Official Documents