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Some of DeFi’s Leading Investors Are Backing a New Options Protocol
Framework Ventures and ParaFi Capital are leading the round in a bid to see if DeFi options trading can finally click.
Updated May 9, 2023, 3:22 a.m. Published Jul 26, 2021, 1:00 p.m.
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Lyra, an options trading protocol built on Ethereum scaling network Optimism, received $3.3 million in a seed round led by Framework Ventures and ParaFi Capital.
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The DeFi Alliance, Orthogonal, Robert Leshner’s Robot Ventures and Apollo Capital also participated in the round.
The decentralized finance (DeFi) project, which just launched its testnet less than a month ago, is expected to launch on mainnet in September.
As DeFi continues gaining traction, on-chain financial products that mirror those seen in traditional finance, from structured products to derivatives, are growing in popularity, but the options market has struggled to find traction.
Read more: DeFi Derivatives Protocol Vega Raises $43M in CoinList Token Sale
Lyra is integrated with Synthetix, a trading platform that also uses Optimismhttps://community.optimism.io/faqs/. The tie-up with Synthetix allows Lyra to hedge risk for liquidity providers. Risk management enables Lyra to keep fees low for traders.
“Options have been a core missing piece in the DeFi stack,” ParaFi Capital’s Santiago Roel Santos said in a statement. “Lyra’s novel on-chain pricing mechanism, Synthetix integration, and deployment on Optimism will introduce traders and liquidity providers to a scalable and capital-efficient options protocol.”
Lyra’s team plans to use the money from the seed round to hire additional engineers.
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