Lyra is the first project to be built natively for OΞ, accessing a design space that is unbounded by the constraints of layer one. This allows new approaches to hard problems like options, which have complex pricing and risk mechanics that require OΞ’s scalability. We’re beyond excited to begin the era of OΞ native projects and can’t wait to see what the community builds next.
However, being one of the first projects on L2 - there is a level of onboarding that is required to experience the significant benefits of this new generation of Ethereum technology. We've broken down the steps to trade on Lyra below.
To trade on Lyra:
- Connect wallet to Optimism
- Send Eth for gas to Optimism
- Acquire sUSD on Uniswap
- Buy an option
- Acquire Synths on Kwenta for collateral
- Sell an option
Connect wallet to Optimism
Lyra is built on Layer 2! This means to trade you must be connected to the Optimistic Ethereum Mainnet. This can be done by switching your Metamask wallet to Optimism and connecting to the Lyra dApp. Right now, Lyra only supports Metamask, and we will be looking to add support for more wallets in the future.
To connect your wallet, press the ‘Connect Wallet’ button in the top right corner of the trading dApp. This will trigger a modal which will ask you to change networks from Mainnet to Optimistic Ethereum.
Click here for a guide manually add the Optimistic Ethereum network to your Metamask wallet.
Send Eth to Optimism
You will need Eth on L2 for two reasons:
- To purchase sUSD on Layer 2
While up to 50x cheaper than Layer 1, there is still a gas fee on Layer 2. To trade on Lyra you will need to move a small amount of Eth to Optimism Mainnet to pay for gas and transactions.
You will also need Eth on L2 to use Uniswap to acquire sUSD, see more in the next step in this guide.
You can easily bridge Eth to Optimism here - https://gateway.optimism.io
Click here to watch a full guide on sending mainnet Eth to Optimism.
Acquire L2 sUSD on Uniswap
Lyra currently supports sUSD to buy and sell options. You can easily acquire sUSD using the L2 Eth/sUSD pool on Uniswap. If it's your first time using Uniswap on Layer 2 follow the Uniswap article here.
Find out why you need sUSD here.
Buy an option
You're connected to Optimism, you have some Eth and sUSD on Layer 2 - you now have everything required to purchase a call or put. Before doing so be sure to do your own research about the purpose of using options and the potential risks. You can get a good start by looking at the Lyra docs here.
You can toggle between buying calls and put options:
Scroll through the boards and decide which option fits your investment goals:
View the active payoff chart and decide how many contracts you want to purchase:
Acquire Synths for collateral
In order to sell options on Lyra, traders are required to lock up an equivalent amount of the underlying asset as the options value. V1 of Lyra requires traders to fully collateralize their short positions. Find out why we use synths here.
To sell options, you will need swap to the synth version of the underlying asset you're looking to trade. To do so, simply swap the token on Layer 2 Kwenta.
A full guide to trade on L2 Kwenta 👉 here
Sell an option
To sell an option, toggle the options board similar to that between the call and put.
After that, follow the same flow as purchasing an option.
What happens when options expire?
The price of the underlying on expiry is determined via a Chainlink oracle snapshot. Options are then cash settled according to this price.
Do options settle automatically?
The settlement process occurs automatically - so users do not have to take any action prior to expiry. Following expiry, option buyers will have to come to the Lyra portfolio page to claim their payouts, and option sellers will come to reclaim the collateral that they are entitled to. Neither of these actions has a deadline, so your funds are safe indefinitely.
How do I claim my collateral?
By going to the Portfolio page on the Lyra dApp and clicking the ‘settle’ button.
Join the Community
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; provide early feedback, be the first to learn about new opportunities with Lyra, and be a part of building a new DeFi community.