The Lyra Short Put #15
- 📊 Lyra Stats
- ⚙️ Lyra Newport Upgrade
- 🥕 Lyra Leap Update
- 🚀 Lyra Staking Migration to L1
- ☎️ Lyra x Arbitrum Call
- 🔙 Lyra Grants “Reply Guy” Competition
- 🦘 Ecosystem News
- ⚔️Trading Corner
- 🧵 Notable Lyra Tweets
📊 Lyra Stats
In the last 30 days, Lyra’s notional volume has seen significant growth, increasing by over 30% to reach $94.5 million. This is an impressive feat and demonstrates the growing interest in the Lyra ecosystem. In addition, over 131032 trades were executed on Lyra in the last 30 days, with premium volume reaching $3.33 million.
Recently, the Lyra protocol launched on the Arbitrum platform and has already attracted over $6.1 Million in TVL. This is a significant milestone for Lyra and a massive step towards Lyra’s mission of democratizing options trading. This clearly indicates that traders are taking notice of the Lyra protocol and its potential to become a leading options trading platform on Arbitrum.
Traders on the Lyra platform are optimistic about the market, with the most popular strategy being the long straddle. This strategy involves buying both a call option and a put option at the same price and expiration date, suggesting that traders expect a high degree of market volatility and position themselves to benefit from it.
Vault performance has also grown in the last month, with an average annualized performance of 14.5%. An additional 21% APY is possible for stLyra holders, boosting their annual yield up to 36% depending on the asset. Now is a great time to try out Lyras vaults and earn rewards for supporting the protocol.
In addition, $LYRA has experienced a significant price increase in the last 30 days, rising from lows of $0.07 to $0.17. With the cost of boosting vault returns currently at $0.25 per LP, there has never been a better time to get involved in the Lyra ecosystem.
Lastly, with Lyra now offering options on Arbitrum, stakers are required to move to the Ethereum mainnet to stake. This has not deterred stakers, as the number of stakers has grown, with over 3400 Lyra holders staking over 155 million Lyra.
⚙️ Lyra Newport Upgrade
Lyra has recently undergone a significant upgrade, known as the Newport upgrade, which significantly improves the way the protocol functions. Newport enables MMVs to partially collateralize short positions with cash, eliminating the need for swapping to the base asset for collateralization and hedging. This shift in strategy improves capital efficiency, lowers spreads, and enhances the trading experience for users. Additionally, the upgrade introduces perpetual as the collateralization and delta hedging instrument. This shift in the MMVs’ collateralization strategy is expected to bring several benefits, including improved capital efficiency for the Automated Market Maker (AMM), lower spreads, and a better overall trading experience. The upgrade also increases system modularity, opening up new opportunities for traders. The Newport upgrade aims to substantially reduce the fees paid by Liquidity Providers (LPs) and increase the number of options the pool can sell with the same amount of liquidity. This means that LPs will benefit from higher yield for the same amount of trading volume, and traders will be able to access more liquidity from the same amount of deposits in the MMVs.
🥕 Lyra Leap Update
January has been a busy month for LEAPs (Lyra Enhancement Action Proposals). Leap 43, 44, 46 were proposed. Two of these are for integrations with Lyra!
Leap-43: Kwenta Hosting Pilot
This proposal allows KwentaDAO to host a front end for Lyra’s options as part of the Kwenta exchange for a period of 6 months. We are requesting 400,000 LYRA to the Kwenta DAO in order to incentivize hosting and align the DAOs.
Prior to the end of the 6 month pilot, the terms of the partnership between Kwenta and Lyra should be evaluated and continued or amended in a subsequent LEAP.
The details are still being worked out in the #LEAP-43 Kwenta Hosting Pilot discord sub-channel. This is bullish for both projects!
There are even whispers in the discords that Kwenta will have trading capability on Arbitrum in 2023. Kwenta + Lyra = Will be THE DEFI TRADING HUB!
Leap-44: Incentives for Lyra-ETH Mainnet Liquidity
This LEAP proposes 5m LYRA in annual incentives for LYRA-ETH Uni v3 liquidity on Ethereum mainnet via Arrakis. It also proposes removing LYRA-ETH incentives for the same program on Optimism.
Leap-46: Coinstore to Fork and Self-Host Lyra
The passing of this proposal will allow Coinstore to host Lyra’s frontend on Coinstore’s centralised exchange. This is will be the first true integration between DeFi and CeFi, Coinstore will be working closely with Lyra in regards with the integration of the proposed fork.
🚀Lyra Staking Migration to L1
The Lyra Protocol will soon deploy on Arbitrum, their first step in multichain expansion! To avoid liquidity fragmentation across multiple L2s, Lyra will migrate to Ethereum mainnet as a secure and unbiased home for staking. In addition, migrating LYRA staking to mainnet introduces the following benefits:
How to migrate
Firstly, staked LYRA must be migrated to the new contracts on Optimism. Click the claim old stkLYRA prompt on the Rewards page.
Navigate to the rewards page here 👈
Next, withdraw your stkLYRA from Optimism to mainnet. By clicking the migrate button you’ll be redirected to the Optimism native bridge. Click max and withdraw to L1.
To read an in-depth guide on how to migrate your Staked Lyra to L1, please check out this guide:
☎️ Lyra x Arbitrum Call
Recently, the Lyra team hosted a Twitter Spaces call with Arbitrum, right before Lyra launched on Arbitrum. During the call, the team discussed the future of Lyra and highlighted their key priorities for the coming months, focusing on increasing capital efficiency. It was an excellent opportunity for the community to ask the Lyra team questions. Tune in below to hear more alpha about the Lyra and Arbitrum ecosystem.
🔙 Lyra Grants “Reply Guy” Competition
Lyra Grants is sponsoring a competition to educate the community about the Lyra Protocol and more specifically Lyra’s Newport upgrade, and it’s deployment on Arbitrum by launching a content creation campaign across social media platforms. Points will be awarded for content created across Twitter and Youtube, $7500 in LYRA is up for grabs.
- Remember, the purpose of this competition is to educate
- Viral and very creative content to be rewarded extra points.
- Competition will run for 1 month from 24th Jan to the 24rd of February UTC
- Retroactive rewards to Lyra threads / videos posted in January, and anyone that has posted to community marketing.
How to submit an entry:
Post a link to your submission to #community-marketing in the Lyra Discord with a 🦘 emoji to be in the running
The Lyra Grants DAO will act as the judge to award the competition winners
Prizes
The top 15 best creators by points collected will be rewarded in LYRA tokens.
1st $2,250
2nd $1,000
3rd $750
4th — 5th $500
6th — 15th $250
Where to find information:
- The Lyra docs is a good place to start: How does Lyra work?
- Read this Newport primer: https://blog.lyra.finance/newport-upgrade/
- Ask questions in the community Discord
List of useful blogs (some are a little out of date):
- Understanding Lyra video — GVOL (now Amber Derivatives)
- Bankless x Lyra options guide
- Blocmates x Lyra guide
List of useful threads:
- Lyra x Arbitrum — EthBoi
- Capitalizing on arbitrage opportunities — Ethboi
- Lyra Newport breakdown — Master Mojo
- Newport implications — Muir
- Lyra fees — Muir
🦘Ecosystem News:
It is hard to stay up to date with everything in crypto, checkout some of the latest updates/tweets within Lyra’s ecosystem:
Polynomial: Polynomial announced they are planning to implement Synthetix Perps V2 and will engage in Futures Trading soon! To get beta access head to their discord and fill out the form.
dHEDGE/Toros: dHEDGE announced they are now running their Optimism incentives, and eligible vaults are earning an additional ~20% APY for the next 6 months!
Eligible vaults will receive 35,000 OP per month, distributed pro-rata directly into each vault daily, calculated based on percentage of total eligible TVL. This will increase the performance of each eligible vault and therefore increase each users ROI.
Initially, the following Toros vaults will be included in the distribution:
Along with the following actively managed vaults:
⚔️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:
Its been reiterated multiple times, but Lyra Finance can offer some juicy yields for arbitrage!
@Ethboi explains how you can do this, and the tools that are available for you to use for FREE in this nice threaded tweet
🧵 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:
