Announcing Siren Lemuria
Cheaper Options, Simpler LP Withdrawals, More to Trade. Siren DOV.
Siren, the decentralized options trading protocol, is very excited to announce that after six months of development, Siren Lemuria will be released this month.
At Siren, we believe that users deserve the same level of accessibility, flexibility, and control for DeFi cryptocurrency options as they have in TradFi. Lemuria is a huge step forward in realizing our vision for creating, trading, and executing options on any asset. Siren was created to do for options what Uniswap did for listings — when Siren is fully built, any user will be able to spin up an options market for any new asset by simply providing liquidity.
With Siren Protocol, everyone will be able to access decentralized options in many ways via the Siren API, and projects will build even more customized options interfaces using Siren, similarly to how Ribbon uses the Opyn protocol. Siren Lemuria is a giant milestone for the project and will propel us to new and greater heights.
Major Improvements in the New Version
At a high level, Lemuria contains the following improvements:
- Cheaper Options — Premiums for options have better pricing, which makes them cheaper and competitive to ones on centralized platforms like Deribit. This gives users even more incentive to trade on Siren versus a centralized platform, and will give Siren even more competitive edge as we release options markets for assets that don’t exist on any other platform.
- Simpler LP Withdrawals — No more managing collateral in multiple series; instantly see available versus locked collateral in one simple view. Collateral also now has the potential to become unlocked earlier.
- Less Variable LP Returns — Changes to the way the protocol handles capital in the pools will give better control over risk borne by the Automated Market Makers. This change in turn will reduce the variability of returns to LPs.
- Greater Decentralization — In previous version of Siren, prices for options were calculated using volatility information that was inputted manually by the team, while in Lemuria volatility data is retrieved automatically from an on-chain data source. This change means that not only is Siren more decentralized, and therefore more scalable, but also that volatility will be updated in real time, which will result in better options pricing.
- More to Trade — Options series are now generated automatically as users ask to buy them. This modification means a much larger selection of options available to trade, and it also relieves the centralized operational overhead of releasing series every week. Now that a human doesn’t need to create new markets regularly, Siren can significantly scale the number of asset markets we offer, and the way is now open to a multi-chain strategy for the protocol moving forward.
At the moment, the primary way that users interact with the Siren protocol is through the Siren retail trading app, but in the future Siren will be used as an operating protocol for many different use cases. One feature that will launch with Lemuria is our Defi Options Vault (DOV) buying program, which lets market makers and institutions buy options in bulk directly from the protocol.
The DOV feature has been running in beta since January and has allowed Siren to significantly increase trading volume and usage rate of TVL, which in turn boosts the APY received by LPs. Wholesale options buying is how Ribbon Finance and other projects have risen to prominence over the last few months, and now Siren has the capability to drive similar volume. For more information on DOVs, see this post by QCP Capital.
Lemuria Moving Forward
The Lemuria release contains a multitude of technical achievements, and in order to unpack them all we will be publishing a series of posts in the lead up to deployment. Each post will focus on an improvement contained in Lemuria; how that change betters the user experience and function of Siren; the issues solved by the change; and the details involved in identification and execution of the improvement.
Stay tuned for a deep dive into the new features of Siren Lemuria. A huge thank you to all the Siren contributors, investors, Discord channel members, and long-term token holders. We’re here for you and very glad to have you with us on our journey to ever greater heights.