Lyra priceLYRA

What is Lyra (LYRA)?

Lyra is an open protocol on Ethereum that enables traders to trade options with a pricing model that's based on the market and adjusted for skew. What's more, Lyra quantifies the risks for liquidity providers and actively hedges them to encourage more liquidity. If you're interested in this protocol, you can check out the Lyra Interface, a web interface that's just one of many ways to engage with it. And if you want to govern the Lyra Protocol, you can use the Lyra Governance system enabled by the LYRA token.

Who are the Founders of Lyra (LYRA)?

Lyra was founded by Slava Gomzin and Wuzhou Yang. Iulian Gheorghiu is in charge of software engineering, while Zaenal Arifin is the chief art officer.

How does Lyra (LYRA) Work?

When engaging in options market making, the goal is to determine the market value for implied volatility (IV), or the expected volatility of the asset until it reaches expiration. If the IV is high, the cost to purchase an option will increase, while low IV will result in a decrease in cost to sell an option.

The Lyra AMM operates by increasing implied volatility when there is high demand for options, and lowering it when supply outweighs demand. This allows the AMM to reach a market-clearing value for IV for each strike and expiry.

The Lyra AMM provides options for various strikes and expiries, with tradeVol, a market-driven value for implied volatility that varies by expiry and strike. TradeVol is calculated by multiplying baseIV, which is specific to each expiry, and skewRatio, which is specific to each strike.

Lyra's fee function includes a flat fee based on option price, a flat fee for exchange costs, a dynamic fee based on the pool's vega risk, and a dynamic fee based on the difference between baseIV and GWAV, as well as the traded strike's skew ratio and vega.

What makes Lyra (LYRA) Unique?

Lyra's scalability sets it apart from most blockchains. While other blockchains take several minutes to hours to process and approve transactions, Lyra enables instant approval and the ability to process multiple transactions simultaneously. Additionally, Lyra's transaction fee structure is flexible, unlike the hardcoded fee mechanisms of most other blockchains. With its low cost and fast transactions, Lyra offers a versatile payment method that is difficult to achieve with mono-cryptocurrency systems. Furthermore, Lyra's decentralization provides unique features such as security, privacy, and permissionless access, setting it apart from traditional payment systems.

What is the LYRA Token?

The Lyra network operates using its native token called LYR. To pay for certain transaction fees, LYR tokens are utilized. The distribution of these tokens is carried out through various methods such as airdrops, bounties, and others. These tokens play a crucial role in initiating network activities and also serve as an incentive for both network and application development.