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The Lyra Protocol is a new exciting project that aims to conquer the Defi markets. Its team developed a suite of smart contracts creating an automated market maker. The latter offers customers trading options on ERC-20 coins on the Optimistic Ethereum Blockchain.
There is also the Lyra Interface. Thanks to this web interface, users will enjoy easy interaction with the Lyra Protocol. However, the interface is only one of many ways to do that. The company will provide other opportunities, as well.
The team is determined to ensure that its protocol remains fully decentralized. To achieve that goal, it added Lyra Governance. The governance system for managing the Lyra Protocol is already ready for launch. The LYRA token is its key part, though. The company aims to start its ICO sale soon. This native utility ERC20 coin will give its owners the right to vote on the decisions and suggestions concerning the platform’s future development. The total supply of tokens is 1,000,000,000, but only some percentage will be available for purchase at the first stage.
What does the Lyra Protocol offer?
As an options automated market maker (AMM) protocol, Lyra enables investors and traders to buy and sell options on cryptos against a pool of liquidity. It will have two key user groups, options traders and liquidity providers.
Investors and traders will be able to use this platform to trade options. They can either sell options to the MMV or buy options from it. Traders will also have to pay fees to Liquidity providers as compensation for their liquidity.
On the other hand, liquidity providers (aka LPs) will deposit their stablecoins (sUSD) into one of Lyra’s asset-specific Market Maker Vaults (MMVs). The company will use this liquidity to make two-sided options markets for the asset specified by the vault. LPs benefit by depositing liquidity to the vault as they will earn the fees paid when customers trade options.
Moreover, the team introduced Options TLDR, which gives its owner the right to buy or sell an asset at a specified price (aka the strike price) at a specific time. Options trading is very flexible, which is true in the Lyra platform case, as well. That’s why so many customers choose it. They profit handsomely in the process. However, no venture is without risks. So, investors need to decide carefully which investments are worth their while.
Lyra protocol enables its customers to hedge their risk, generate extra income on their assets, lock in a payoff, get leverage, and speculate on future price movements with precision.
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