Derive (DRV)

Lyra is a decentralized options trading protocol powered by a specialized automated market maker (AMM) system.

Basics

• Based in:
• Started in / Announced on: 15-6-2021
• Testnet release:
• Mainnet release:
• From EthHub (22-6-2021):

"Lyra is DeFi’s first complete options AMM with features such as unified liquidity across all strikes and expiries, automated delta hedging for LPs, instant transactions and much more."

History

Rebranded from Lyra to Derive (28-8-2024).

Audits & Exploits

• Bug bounty program can be found [insert here].

Governance

DAO

• V2 created a "fully autonomous on-chain system that allows LYRA token holders to directly govern the protocol and treasury." (5-4-2023)
• The Lyra Launch Council (28-8-2021) is a community elected group that will oversee the launch of the protocol and token.

Technology

• Whitepaper can be found [insert here].
• Code can be viewed [insert here].

Implementations

• Built on: Ethereum and Optimism (31-8-2021). Planning its own L2 on the OP stack.

How it works

• From Bankless (7-6-2022):

"Lyra is a decentralized options trading protocol powered by a specialized automated market maker (AMM) system. Notably, Lyra uses Synthetix’s sUSD stablecoin as its exclusive quote asset, so traders pay for opening long positions or closing short positions with sUSD. Lyra also uses Synthetix as a one-stop protocol for getting long and short exposure on its markets’ base assets, i.e. delta hedging."

Upgrades

• V2 (28-7-2023):

"A self-custodial, modular, performant stack for on-chain derivatives trading.

V2 is the final form of the volatility engine, composed of:  Lyra Chain: A custom Ethereum rollup on the OP stack

Lyra Protocol: A decentralized margining and risk engine

Lyra Matcher: An open source order matching engine.

The new protocol can support volumes that the AMM currently generates using $15m in TVL, with as little as $1m in TVL."

Staking

• From their Twitter (5-4-2023):

"Lyra is introducing an on-chain token holder voting model, where users can stake LYRA tokens to receive stkLYRA, which grants them proposal and voting rights in the governance process."

Roadmap

• Can be found here (22-12-2021):

1. "The Avalon release (formerly v1.2) will arrive in Q1 2022, accommodating up to 12-week rolling expiries, partial collateralization for short positions, and the ability for LPs to freely enter/exit the liquidity pool, subject to a short delay.
2. A comprehensive tokenomics proposal for LYRA to be introduced to allow LYRA to be staked for xLYRA to access boosted rewards for trading and providing liquidity.
3. Lyra Vaults structured products with on-chain, algorithmic strike selection/execution, is in the final stages of development and will be launched following the Avalon release."

Pros and Cons

Cons

• One of their investors, Divergence, got caught airdrop farming, hinting to insider knowledge (9-10-2021). It first came to light due to Ribbon Finance:

"This @divdotvc analyst @_bridgeharris has made 652 $ETH and counting from @ribbonfinance airdrops, quite impressive. finding wallets like their's and copytrading them is probably the best way to make it tbh. the strat was just deposit .1 eth in ribbon theta vault 140 days ago but across many many wallets"

• Divergence quickly released tweets saying they were in crypto for more than money, realized they went to far (dumping the farmed token directly into ETH) and that they would send the ETH to the Ribbon DAO.

Team, Funding, Partners

Team

• Full team can be found [here].

Funding

• Got a $1M contribution from the synthetixDAO (9-8-2021).
• One of their investors, Divergence, got caught airdrop farming, hinting to insider knowledge.

(:

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