Lyra Finance Introducing Avalon
Lyra Finance Introducing Avalon – Now live on Optimistic Ethereum, Lyra Avalon builds off the strong foundation established in V1.
Avalon provides a step change in the options trading experience for DeFi, with a list of innovative features which have been requested and refined by the Lyra community. This blog is a summary of all of the new and exciting protocol features, developer tools, redesigned trading interface, security audits and more.
Avalon features:
With the release of Avalon, Lyra becomes one of the most robust, efficient and accessible options trading experiences across all of decentralized finance. An excellent trading experience combined with predictable, programmable, deep 24/7 options liquidity will lead to more fees for LPs, driving even more AMM liquidity which in turn generates an even better venue for traders. How is this all achieved? Avalon centers around four main protocol upgrades which we will introduce now:
Anytime entry/exit for LPs 🔁: LPs can now enter and exit Lyra market maker vaults (previously known as market pools) at any time subject to a 7 day delay. This greatly improves the liquidity provision experience, providing flexibility for users to reallocate liquidity across different markets and begin earning rewards immediately.
Lyra LP tokens are also now withdrawable as ERC-20 tokens and will be integrated throughout the rest of DeFi as a yield bearing asset (stay tuned…). Read more about the mechanism here.
12-week rolling expiries ⏲️: Avalon can now support options trading out to 3 months of expiries with new listings constantly being added. This will look like 1, 2, 3, 4, 6, 8 and 12 week expiries on ETH that replenish every couple of weeks. Listings will start slow as liquidity enters the system but will eventually support over 100+ strike and expiry combinations.
Partial collateralization 📈: The Avalon Upgrade introduces partially collateralized options selling, meaning that traders can now sell 4-5x as many options with a given amount of capital than they were able to with v1. This allows for capital efficient arbitrage and provides liquidation fees to LPs in the market maker vaults.
Universal closing 🌐: Users can now close positions regardless of delta or time to expiry. With a small closing fee, traders can close very in the money (ITM) longs (to cash in profits) or out of the money (OTM) shorts (to free up collateral) at any time. This has been a broadly requested feature within the community and will provide the assurance that trades can always be closed – a huge upgrade!
About Lyra
Lyra is an open protocol for trading options built on Ethereum. Lyra allows traders to buy and sell options that are accurately priced with the first market-based, skew adjusted pricing model. Lyra also quantifies the risks incurred by liquidity providers and actively hedges them, encouraging more liquidity to enter the protocol.
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