The Lyra Short Put #14
- 📊 Lyra Stats
- 🔙 Lyra Grants Wave 3 “Social”
- 🥕 Lyra Leap Update
- 🦘 Ecosystem News
- ⚔️Trading Corner
- 🧵 Notable Lyra Tweets
📊Stats:
Lyra’s December performance highlights
Lyra has experienced a notional volume of $72.1 million and a premium volume of $2.89 million in the past month. Retaining vital metrics throughout all the volatility December had to offer. The move to Arbitrum is expected to drive more attention to Lyra’s technology and provide decentralized options for over 2.3 million unique addresses, resulting in an anticipated increase in volume in the coming months.
Throughout the past month of December, fees collected by Lyra have remained consistent with what was observed last month. The use of options has grown in popularity with an increase of 44% in the unique addresses for a 30-day period growing from 5503 to 7930 with a total of 93,178 trades placed in the past 30 days. Despite this, the implied volatility has been on a downward trend from the previous month falling from the high of 75% to the mid of 40%.
Lyra’s vaults offer an appealing return of 8.79% per year (excluding inflationary incentives and staking bonuses). This compares favorably to the 1% risk-free rate for stablecoins on AAVE. The vault performance has continued to grow for sETH and has remained stagnant for sBTC.
In a stagnant market, traders may be seeking ways to generate returns on their investments. The most popular strategy used has been a long straddle, indicating a bullish outlook on volatility and anticipation of more to come in the coming month. This strategy involves selling two options at a middle strike price and buying one option at a higher strike price and one at a lower strike price, potentially generating a profit if the price of the underlying asset remains stable. It is expected that the butterfly spread strategy will be increasingly utilized in the coming months as traders look for ways to generate returns in a stagnant market.
🔙Lyra Grants Wave 3:
The Lyra Grants DAO is excited to share that they have done over $100,000 in grants since its inception! So many projects have come to light from the community, some honorable mentions include:
https://twitter.com/lyrashortput — Lyra community media initiative
https://twitter.com/Lyra_Live and some useful discord bots like 💰arbs, 📥trades and 🤖vaults
https://teal.finance/rainbow/ — DeFi options trade screener
https://stradle.xyz/ — A useful tool to find arbitrage opportunities between Lyra and Deribit + many more
The Grants DAO is also excited to launch the next epoch for Grants — “Social”
Grantees are encouraged to experiment with social media across web2 and web3 applications with the aim of sharing the benefits of accessing on-chain options liquidyty via the Lyra Protocol.
View open RFPs and apply here: https://grants.lyra.finance/
MAKE SURE YOU Give the new Lyra Grants page a follow!
🥕 Lyra LEAP updates:
Leap-40: Incentivize Velodrome Liquidity on Optimism
A proposal was announced to add pool 2 liquidity mining programs to velodrome on Optimism. Leap-40
Leap-42: Migrate Lyra staking to mainnet
This proposal proposes migrating LYRA staking from Optimism to Ethereum mainnet in anticipation of the Lyra Protocol’s multi-chain deployment. It also includes modifications to reward programs to support mainnet staking.
🦘Ecosystem News:
It is hard to stay up to date with everything in crypto, checkout some of the latest tweets within Lyra’s ecosystem:
Polynomial:
Brahma:
dHEDGE:
Toros:
⚔️Trading Corner
With Lyra incentivizing trading, now is the BEST time to trade DEFI Options with Lyra! With everything being on-chain now is a great time to see what the whales are doing:
🧵 Notable Lyra Tweets
With the launch of Avalon and the OP incentives there has been a lot of talk on twitter about our beloved volatility engine! In case you missed them here are some of the good ones:
LEAP Status Tracker
- LEAP-17: Establishing GrantsDAO, Status: IMPLEMENTED
- LEAP-18: Universal Closing and Partial Collateralization, Status: APPROVED
- LEAP-19: Launch SOL Market, Status: IMPLEMENTED
- LEAP-20: xLYRA Tokenomics, Status: DRAFT
- LEAP-21: Bridging Emissions Until Avalon, Status: IMPLEMENTED
- LEAP-22: Launch Aave Market, Status: APPROVED
- LEAP-23: Add Liquidity on Bancor, Status: IMPLEMENTED
- LEAP-24: OP Incentives Status: REJECTED
- LEAP-25: Incentivizing GrantsDAO, Status: DRAFT
- LEAP-26: Bridging Tokenomics until xLyra, Status: Approved
- LEAP-27: DevCo, Status: Proposed
- LEAP-28: Increase Council and Grants DAO Terms, Sync Elections, Status: Implemented
- LEAP-30: Reintroducing Short Collateral Trading Rewards, Status: Implemented
- LEAP-34: Simplifying Trader Rebates, Status: Approved
- LEAP-36: Cash Collateralized AMM, Status: Approved
- LEAP-37: Deprecate SOL Market, Status: Approved
- LEAP-38: GMX Hedging and deploy on Arbitrum, Status: Draft
- Lyra Learn
- https://blog.lyra.finance/tag/learn/
- Lyra Docs
- https://docs.lyra.finance/
