We're excited to announce that the Chainlink (LINK-USD) options market is now live on Optimistic Ethereum Mainnet. Eligible traders can now buy and sell options on LINK instantly with low gas fees.
Our objective is to continue adding options markets for the most popular tokens in DeFi over the coming months. Stay tuned for more important updates, key date announcements, and exciting opportunities join the Lyra community on Discord and follow us on Twitter.
- Base Implied Volatility: 1.3
- Skew adjustment factor: 0.0125
- Standard size: 50
- Vega fee coefficient: 30
- Spot-price fee: 0.004
- Volatility cut-off: 0.55
- Liquidity: Lyra has incentivised liquidity provision to the LINK market with $LYRA tokens. The details and rationale for this proposal can be found here.
- Options Quoted: For the first round, options will be listed with 10, 17, 22 day from launch expiries.
- Test Cases: Test cases are included with the implementation and are available here
Lyra is a protocol for trading options 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.