It’s here! We’re proud to announce the most significant upgrade to Lyra yet, Avalon.
Now live on Optimistic Ethereum, Lyra Avalon builds off the strong foundation established in V1 (Two-sided options markets, unified liquidity, composable delta hedging) with a suite of new features which will offer the best options trading experience that DeFi has ever seen.
Avalon provides a step change in the options trading experience for DeFi, with a list of innovative features which have been requested and refined by the Lyra community. This blog is a summary of all of the new and exciting protocol features, developer tools, redesigned trading interface, security audits and more.
With the release of Avalon, Lyra becomes one of the most robust, efficient and accessible options trading experiences across all of decentralized finance. An excellent trading experience combined with predictable, programmable, deep 24/7 options liquidity will lead to more fees for LPs, driving even more AMM liquidity which in turn generates an even better venue for traders. How is this all achieved? Avalon centers around four main protocol upgrades which we will introduce now:
Anytime entry/exit for LPs 🔁: LPs can now enter and exit Lyra market maker vaults (previously known as market pools) at any time subject to a 7 day delay. This greatly improves the liquidity provision experience, providing flexibility for users to reallocate liquidity across different markets and begin earning rewards immediately.
Lyra LP tokens are also now withdrawable as ERC-20 tokens and will be integrated throughout the rest of DeFi as a yield bearing asset (stay tuned…). Read more about the mechanism here.
12-week rolling expiries ⏲️: Avalon can now support options trading out to 3 months of expiries with new listings constantly being added. This will look like 1, 2, 3, 4, 6, 8 and 12 week expiries on ETH that replenish every couple of weeks. Listings will start slow as liquidity enters the system but will eventually support over 100+ strike and expiry combinations.
Partial collateralization 📈: The Avalon Upgrade introduces partially collateralized options selling, meaning that traders can now sell 4-5x as many options with a given amount of capital than they were able to with v1. This allows for capital efficient arbitrage and provides liquidation fees to LPs in the market maker vaults.
Universal closing 🌐: Users can now close positions regardless of delta or time to expiry. With a small closing fee, traders can close very in the money (ITM) longs (to cash in profits) or out of the money (OTM) shorts (to free up collateral) at any time. This has been a broadly requested feature within the community and will provide the assurance that trades can always be closed - a huge upgrade!
New trading interface
Lyra's trading interface has been redesigned from the ground up, incorporating new features like partial collateralization and anytime entry / exit while maintaining its simplicity and retail appeal with a new design system. The dapp has a new "Portfolio" page which acts as a control centre for traders and LPs, highlighting their positions and profits. As well as desktop support, we finally launched a mobile-first experience, a top requested feature from our traders.
Lyra has a new look. Along with a new design system, we refreshed our brand language to better reflect our mission to build an open, decentralized and community-owned options protocol. Our new landing page showcases this new brand language and better communicates Lyra's value prop as being the easiest place to buy and sell options on cryptocurrencies.
For power users who want deeper insights into trader behaviour and market maker vault performance, we've created a detailed analytics dashboard using Grafana and our new subgraph (see below). Join our Discord to request additional stats you want to see.
Options are the perfect composable primitive in DeFi, enabling integrators to construct any payoff in their applications. To make it easy for any developer to build on top of the Lyra Protocol, we built a few open source tools suitable for any environment and use case:
- Protocol SDK: Import the latest deployments, ABIs and testing tools for on-chain integrations
- Subgraph: Analyze rich historical data indexed by our subgraph
Lyra builds with a security-first approach and the Avalon contracts have gone through audits from Halborn, Sherlock (coming soon) and Iosiro. Much of the logic remains similar to the previous version which had also undergone several audits from Certora, Iosiro and CertiK.
View the audit reports here.
Lyra is an open protocol for trading options built on Ethereum. Lyra allows traders to buy and sell options that are accurately priced with the first market-based, skew adjusted pricing model. Lyra also quantifies the risks incurred by liquidity providers and actively hedges them, encouraging more liquidity to enter the protocol.
Stay tuned for more important updates, key date announcements, and exciting opportunities by following us on Twitter.
Join the Lyra community on Discord to get involved; be the first to learn about new opportunities with Lyra and be a part of building the future of DeFi.