Chain Tools
Discover quality Web3 tools and DApps
About Lyra
Lyra Finance is a decentralized options protocol that uses an automated market maker (AMM) for options pricing. Instead of orderbooks, Lyra algorithmically prices options based on volatility and Greek risk management.
Built on Optimism and later expanding to Arbitrum, Lyra offers liquid options markets for major crypto assets. The protocol uses liquidity providers who earn by selling options to traders.
Lyra's innovation is making options accessible through DeFi. The LYRA token governs the protocol and incentivizes liquidity provision.
Key Features
Options AMM
Algorithmic options pricing
Optimism Native
Low-cost L2 trading
Automated Greeks
Protocol manages risk
LYRA Token
Governance and incentives
LP Vaults
Provide options liquidity
Synthetix Integration
Uses SNX for settlement
Use Cases
Options Trading
Buy calls and puts
Hedging
Protect portfolio with puts
Liquidity Provision
Earn by selling options
Speculation
Leveraged directional bets
LYRA Staking
Governance participation
Project Info
Frequently Asked Questions
Lyra uses Black-Scholes pricing adjusted for on-chain conditions. The AMM quotes prices based on implied volatility, skew, and Greek exposures. Prices adjust automatically as positions are opened. LPs provide liquidity and earn from trading spreads.
LP vaults hold collateral that backs options sold to traders. LPs earn premiums from option sales but take on market risk. The AMM manages Greeks to reduce directional exposure. LP returns depend on market volatility and trading activity.
Options need frequent price updates and low transaction costs. Optimism provides both. Lyra also integrates with Synthetix for settlement, which is Optimism-native. The L2 enables options trading that would be too expensive on mainnet.
Deribit is centralized with deeper liquidity and more markets. Lyra is decentralized and permissionless. Lyra uses AMM, Deribit uses orderbook. Deribit better for professionals, Lyra for DeFi-native options access.
Lyra is audited and has operated since 2021. The AMM model is complex with oracle dependencies. LP vaults carry market risk—large moves can cause losses. Synthetix integration adds dependency. Research the risk parameters.