Today, we’re delighted to announce that Lyra has raised $3m from Framework Ventures and GSR in a strategic round. Lyra will continue to work with respected and capable venture capital partners as the protocol continues building towards the vision of becoming the volatility engine that powers DeFi.
In August of 2021, Lyra was launched as one of the first protocols to access the scalability of Layer 2 Ethereum on Optimism. With the launch came the invention of Lyra Market Maker Vaults, a novel take on an Automated Market Maker for options that combines a best-in-class dynamic volatility model and risk management architecture to provide well-priced, two way options markets in DeFi. Lyra designed and developed the first performant, scalable and accessible options decentralized exchange infrastructure and continues to innovate at the forefront of the space.
Since launch, Lyra’s decentralized options trading protocol has:
• Generated over $850m in notional options trading volume
• Facilitated 90,000 trades from over 15,000 unique addresses
• Supported 6+ protocols who have chosen to integrate its liquidity
Over the past year, DeFi options markets have rapidly matured, with a growing number of new market entrants and an order of magnitude more volume going through the top decentralized protocols. This market driven interest is a result of options finding product-market fit within crypto, due to their unique ability to create desirable payoff structures in any market conditions.
While DeFi options have grown, centralized venues still dominate in terms of volume traded. This significant disparity will soon end for a few reasons:
• Innovations in decentralized architecture can now support the scalability that was never before achievable in DeFi
• New approaches to automated market making are being developed to outperform traditional, centralized systems
• A renewed focus on self-custody, trustlessness, and verifiable code driving more volume on-chain
A diversified protocol treasury is an important asset for any DAO. This round reduces runway risk for ongoing operating costs, and bolsters the long-term resilience of the protocol as an infrastructure layer for options liquidity.
If you’re looking to get involved or contribute to the DAO please join the community!
Lyra is a protocol for options liquidity built on Ethereum. Lyra allows users to buy and sell options that are priced with the first market-based, skew-adjusted pricing model.
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.