Lyra Finance LYRA

1. Summary

Ranks

Liquidity

41

Developer

27

Social

89

Momentum (beta)

0

Stack Rank™

-

Price

$0.000961200000 -0.5%

Market Cap

$599,435.00 (#3221)

Supply

623.63M / 1.00B

Tags

Options Arbitrum Ecosystem Ethereum Ecosystem Optimism Ecosystem

More Metrics

Price
52W High price	$0.19
52W High date	15th Dec 2023 (7 months ago)
All Time High (ATH) Date	18th Dec 2021 (2 years ago)
ATH Price	$0.68
% From ATH	-99.85%
All Time Low (ATL) Date	15th Jun 2024 (1 month ago)
ATL Price	$0.000822220000
% From ATL	26.55%

Supply & Trading Volume
Trading Volume (24h)	$20.00
Total Supply	1.00B
Max Supply	1.00B
Circulating Supply	623.63M

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Description

Lyra Protocol Definition

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Lyra Protocol Definition

Lyra Protocol is a decentralized, open-source infrastructure that provides permissionless, self-custodial margin trading of perpetuals, options, and spot, deployed on the Lyra Chain - an optimistic rollup Layer 2 solution.

Overview

Lyra Protocol is designed to enable traders to execute complex options strategies using decentralized liquidity pools. The protocol aims to improve liquidity efficiency by structuring liquidity providers' risks and actively hedging against those risks. This mechanism encourages more liquidity to enter the market, enhancing the overall trading experience.

Key Features

Lyra currently supports options trading for Ethereum (ETH) and Bitcoin (BTC) using its smart contract-based automated market maker (AMM) system. To ensure stability and transparency, the protocol includes risk management features such as a circuit breaker and an orderly liquidation process.

Security and Liquidity

To facilitate liquidity protection, Lyra employs a peer-to-protocol approach where liquidity providers deposit stablecoins (USDC or sUSD) into market maker vaults. These deposits are then used to hedge risks via Synthetix Perps on the Optimism blockchain. This mechanism protects liquidity providers from market imbalances and ensures the protocol remains functional under various market conditions.

Governance and Tokenomics

The LYRA token is the native utility token used for governance, reflecting the interests of both traders and liquidity providers. LYRA is also utilized for hybrid offchain/on-chain transactions and liquidity provision. The token's primary functions include:

• Backing deposits into the security module to ensure protocol stability.
• Participating in governance votes on network resource allocation.
• Enabling trader and liquidity provider incentives.

Innovations and Milestones

Lyra Protocol v2 stands out for its transition from an automated market maker (AMM) to a central limit order book (CLOB) system. This upgrade brings significant advancements in DeFi options trading, including:

• Portfolio margins and complex collateral management.
• Delta hedging and advanced risk management.
• On-chain settlement and flexible funding options.
• Spot market integration for efficient collateral optimization.

These robust features collectively make Lyra an influential player in the evolving DeFi landscape.

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