Following a successful launch on Optimistic Ethereum, we are thrilled to announce that Lyra has integrated with the 1inch Network to provide in-app swapping, accessing the best pricing across multiple liquidity sources in DeFi. 1inch uses the Pathfinder algorithm which finds the best paths across over 60+ liquidity sources on Ethereum, 30+ liquidity sources on Binance Smart Chain, 20+ liquidity sources on Polygon and on Optimistic Ethereum with an overall volume of over $85B on all networks.
Understanding the use case
Lyra is a protocol for trading options on Ethereum. Designed natively for the Ethereum Layer 2 scaling solution Optimism, Lyra is the first protocol to manage risk for liquidity providers (LPs), allowing it to offer the best on-chain pricing for traders.
To get started on Lyra, traders need sUSD to trade and synths like sETH to open short calls. The process of acquiring sUSD and synths from external exchanges is cumbersome and requires multiple steps:
- First, traders must bridge tokens from Layer 1 to Optimism via the Optimism Gateway: https://gateway.optimism.io/. Synths cannot be bridged at the time of writing due to separation of the debt pools between Layer 1 and Optimism.
- Second, traders must exchange their tokens to sUSD via Uniswap, which is currently the only decentralized exchange protocol available on Optimism.
- Finally, to open short calls, traders must exchange sUSD to the synthetic underlying asset, such as sUSD, via Synthetix.
This adds a lot of friction / overhead to the onboarding process: traders have to execute transactions on three separate tools (the gateway, uniswap and synthetix) to start trading. We want to remove this friction by making all of these steps available right in our trading dapp. One of the main hurdles to trading on Lyra is in swapping to sUSD and other synths on Optimism, improving this process was the logical next step.
The 1inch Aggregation Protocol is the leading DEX aggregator in DeFi and facilitates cost-efficient and secure swaps across multiple liquidity sources. Lyra is the first dApp to use 1inch's API for Optimistic Ethereum since their launch 3 weeks ago.
Some of the key benefits of the 1inch API are:
- Their API is uniquely designed with HTTP endpoints to make integration seamless.
- The 1inch swapping protocol allows us to combine Uniswap and Synthetix swaps into one transaction, combining steps 2 and 3.
- 1inch finds the cheapest swapping path across Uniswap and Synthetix, as well as all future DEX protocols as they onboard to Optimism. We unlock these optimizations with no additional development work.
We're excited to bring our 1,700+ traders this usability with only 2 weeks into our mainnet launch.
The easiest way to acquire sUSD on Lyra is to click your sUSD balance in the navigation bar. A swap form will prompt users to swap to sUSD from any synth or token on Optimism's tokenlist. Users can also use this swap form to convert their sUSD back to tokens when they're done trading.
Additionally, when users attempt to open positions without enough sUSD balance, they will be prompted to open the swap form. The swap form will be prefilled with the required amount of sUSD to complete the trade, adding some buffer for slippage. Traders can choose to get more sUSD if they intend on making additional trades.
Similarly, when users attempt to open short calls without enough of the underlying synth, such as sETH, they will be prompted to swap to sETH.
These flows are designed to reduce friction in the trading experience. We're excited to bring this to our users today.
Lyra is a protocol for trading options on Ethereum. Designed natively for Optimism, Lyra is the first protocol to manage risk for liquidity providers, allowing it to offer the best on-chain pricing for traders. For important updates, key date announcements, and exciting opportunities, follow Lyra on Twitter. Join the Lyra community on Discord to get involved.
About 1inch Network
The 1inch Network unites decentralized protocols whose synergy enables the most lucrative, fastest and protected operations in the DeFi space. This protocol incorporates the Pathfinder algorithm which finds the best paths among different markets over 60+ liquidity sources on Ethereum, 30+ liquidity sources on Binance Smart Chain, 20+ liquidity sources on Polygon and on Optimistic Ethereum. In just two years the 1inch DEX aggregator surpassed $70B in overall volume on the Ethereum network alone. To learn more about 1inch, visit 1inch.io, follow 1inch on Twitter and join their community on Discord.