Welcome to the inaugural edition of "Lyra QMonthly Report" from Lyra’s Quant! We are delighted to present this new monthly newsletter that brings you valuable statistical insights and exciting opportunities on Lyra. As we embark on this journey, we aim to provide you with comprehensive analysis for both Option markets and keep you up-to-date with their latest developments. With a commitment to delivering high-quality content, our team is dedicated to brightening more minds and showing them try potential of the Options. Join us as we dive into the first edition of monthly reports.
Plan for today’s Report:
Lyra’s Stats and Opportunities for both networks
Volume
Fees
New and Existing Traders and Trades
Traders PnL
OI
Staking APRs
Lyra’s News
Twitter
Other sources
Option Market Review
News of the Month
Because this is our first report, let's chart a stats trajectory throughout the life of the protocol in its current form.
Let's take $21,766,937 in Volume from February as a starting point of the sustainable growth of the protocol since the first Newport upgrade. All forthcoming reports will be made public on Twitter on the 18-20th of every month.
Arbitrum Volume Average Monthly Volume - $68,109,841 Total Cumulative Volume - $340,549,204
February - $21,766,937
March - $63,855,786 with +193.36% monthly growth
April - $81,331,819 with +27.37% monthly growth
May - $86,095,534 with +5.86% monthly growth
June - $87,499,128 with +1.63% monthly growth
Even amidst low activity across all markets, we persistently maintain a positive outlook in the Volume growth. Lyra remains dominant in the option market and determined to forge ahead towards even bigger success.
Optimism Volume
June - $13,131,163
Statistics serve as a guiding light for the project, and although it is still in the early stages of our journey on Optimism, the Arbitrum markets are evolving at a rapid pace compared to Optimism. Arbitrum markets recently even sold out, which is an excellent sign of the good traction of the protocol. And we eagerly anticipate even better results from Optimism markets in the near future. So all stats for Optimism will be without any comments in this report.
Normalized monthly growth of the volume sits at 57,05%. For this month Volume has risen by +1.63% from $253,050,076 to $340,549,204 (+$87,499,128). The major growth comes from the Lyra's Arbitrum network integration. The Optimism integration of the protocol is not as popular for now. It sits with only $13,131,163 in Volume, let’s take this month as a snapshot of the Volume for future Reports.
So, the encouraging sign of this progress to watch is the consistent rise in the utilization of Market Maker Vaults (MMVs) due to the high Open Interest (OI) relative to MMV liquidity
Arbitrum Fees
Average Monthly Fees - $88250.4 Total Cumulative Fees - $441,252
February - $29,587
March - $81,035 with +173.88% monthly growth
April - $103,108 with +27.23% monthly growth
May - $126,286 with +22.47% monthly growth
June - $101,236 with -19.83% monthly drop
May was an anomaly in terms of fees with one big day. Other than that, the protocol has generated pretty stable revenue for LPs, which is an excellent result if we consider that Lyra leads the on-chain options market in fees and in notional volume.
Optimism Fees
June - $16,793
Those numbers are not for the whole month because Lyra’s Newport upgrade on Optimism release is less than one month old. So we can say that Optimism integration of Lyra has a great start and has more potential due to the fact that it has 4 markets and many more to come because of Synthetix. Let’s see what we will have in 1-3 months.
The early performance of the Optimism integration of Lyra has been pretty good, showing great potential in the future. With its current four markets and the thought of more to come through Synthetix integration, we await significant growth in the next 1-3 months. The trajectory is promising, let’s see what we will have!
Arbitrum Users and Trades
Average Monthly New Traders - 822.2 Average Monthly New Trades - 4869.6 Total Cumulative Traders - 4,111 Total Cumulative Trades - 24,348
(Cumulative Trades/Cumulative Traders)
February - 518 new Traders with 1,809 Total Trades (3,49 Trades per Trader (Cumulative Trades/Cumulative Traders))
March - 1,739 new Traders with 6,182 Total Trades (3,54 Trades per Trader)
March - +235.71% growth for amount of Traders with +241.74%% growth in the amount of trades made
April - 1,062 new Traders with 5,615 Total Trades (4,09 Trades per Trader)
April - -38.93% growth for amount of Traders with -9.17% growth in the amount of trades made
May - 503 new Traders with 5,418 Total Trades (4,97 Trades per Trader)
May- -52.64% growth for amount of Traders with -3.51% growth in the amount of trades made
June - 289 new Traders with 5,324 Total Trades (5,92 Trades per Trader)
June - -42.54% growth for amount of Traders with -1.73% growth in the amount of trades made
As you can see we can have a decrease in amount of new users from the peak trading activity in March
Optimism Users and Trades
June - 274 Traders with 1,737 Trades (6,33 Trades per Trader)
Despite the challenging conditions of the current bear market, it is absolutely clear that the number of traders joining Lyra has been relatively moderate but still growing. However, what sets Lyra apart is its ability to effectively utilize all trades and retain its user base even in unfavourable market conditions. This resilience is a testament to the steady growth, and the overall trading activity might be impacted by market sentiment, Lyra remains steadfast with its core users. By prioritizing UX, and providing new markets and new networks, Lyra continues to strengthen its position as a leading protocol in the industry and we can be sure about this because of the growing Trades per Trader.
For Arbitrum
The recent growth in PnL for users may indeed be closely associated with the surge in price action witnessed in the market. As prices fluctuate, investors and traders can open the trades more often, leading to positive PnL figures. However, it is crucial to understand that market dynamics are complex, gains and losses are part of the inherent volatility.
And for Optimism
For Arbitrum
Open Interest is indeed a significant metric that provides insights into the overall market health of a product or protocol. It represents the total value of outstanding positions in a particular market, indicating the level of active participation and engagement from traders. Recent instances of sold-out positions reflect the growing demand and popularity of the protocol, signalling a positive trajectory for its growth.
This surge in demand demonstrates confidence in the offering and indicates vibrant markets in Lyra and the crypto field. Moreover, more sold-outs are a positive trend, indicating that the protocol is attracting increased attention and capturing more and more users from the market. The increasing number of sold-out positions is a positive sign of the protocol's growth and market demand.
For Optimism
The steady growth we are witnessing in the Optimism markets clearly indicates that they will continue to play a significant role in Lyra. As more users recognize the benefits and opportunities offered by the Optimism network, we expect to see a continuous influx of participants. The improved scalability and reduced transaction fees provided by Optimism with Bedrock upgrade make it an attractive choice for traders and investors seeking a more cost-effective trading experience which they can now experience on Lyra. Growth in Optimism markets underscores their importance and relevance. As more users flock to these markets on Optimism, we can expect increased activity and a flourishing trading environment on both Arbitrum and Optimism markets.
+------------------------+---------+------------------+
| Staking 18.06 | TVL | APY |
+------------------------+---------+------------------+
| stkLYRA | | 4.87% |
+------------------------+---------+------------------+
| WBTC Vault · Arbitrum | $3.82m | 8.55% - 17.1% |
| ETH Vault · Optimism | $4.31m | 10.53% - 21.05% |
| WBTC Vault · Optimism | $676k | 10.47% - 20.94% |
| ARB Vault · Optimism | $537k | 13.04% - 26.1% |
| OP Vault · Optimism | $736k | 9.48% - 18.96% |
+------------------------+---------+------------------+
| LPs | | |
+------------------------+---------+------------------+
| Arrakis · Ethereum | $971k | 41.1% |
| Camelot · Arbitrum | $153.7k | 0% |
| Velodrome · Optimism | $1.11m | 49.4% |
+------------------------+---------+------------------+
Groundbreaking proposal was approved to deploy a new version of Lyra, Newport, which has integrated with Synthetix Perps V2 and offers advanced hedging and cash collateralization capabilities on the Optimism network.
Arbitrum is growing as well as Lyra with its vaiult utilization and amount of netwroks in supports.
https://twitter.com/lyrafinance/status/1659381005952905216
With the release of the new network and the integration with Synthetix Perps V2, we anticipate a surge in the number of traders joining the Lyra ecosystem using Optimism markets and reaching Arbitrum after that. The expansion to Optimism brings with it a vibrant and active DeFi community, creating a fertile ground for increased participation in the protocol activity.
https://twitter.com/lyrafinance/status/1660479467142393857
Here is more info about recent upgrade on Optimism.
https://blog.lyra.finance/upgrading-lyra-on-optimism/
Here is main thoughts out of this release:
The objective is to increase the protocol's resilience to individual shocks and provide competitive and liquid option markets.
The new version harnesses SNX V2 perpetual futures as a liquidity source to delta hedge the option Market Maker Vaults (MMVs).
Support for USDC as a quoteAsset is being introduced, removing the previous requirement of holding sUSD.
Changes in contract structures and hedging strategies improve capital efficiency and reduce the amount of capital required for delta hedging.
Off-chain oracles provided by Pyth Network, via Synthetix, are employed to enhance trader experience and reduce trading fees.
The expansion to Optimism offers increased fee percentages for liquidity providers, access to new assets for traders, and the ability to trade and provide liquidity using USDC.
As a member of Lyra community, you have the opportunity to help Lyra and contribute your knowledge and insights by participating in content creation. By sharing your expertise, you can help educate and empower fellow traders while also earning some OP as a bounty for your valuable contributions.
The knowledge base will serve as a comprehensive repository of educational content, covering a wide range of topics: About Lyra, Trading, Market Maker Vaults, LYRA Token, Strategies on Lyra, Builders, and Other. Actually, together, we can create a thriving educational ecosystem that empowers traders to use options and help them navigate in with confidence and knowledge.
https://twitter.com/lyrafinance/status/1668974358134681600
About this sold out we talk earlier:)
https://twitter.com/lyrafinance/status/1672103519426592768
New Quests from Lyra on Rabbithole gathered a lot of attention.
https://twitter.com/rabbithole_gg/status/1658881723889745924
The most powerful tool in DeFi options now has a Portfolio section!
https://twitter.com/stradlexyz/status/1658566744087187487
https://twitter.com/PythNetwork/status/1661573348609105920
https://twitter.com/Amberdataio/status/1659192614267289600
Here you can download a full report - Link
New proposal from the Lyra team that can make it zkLyra!
https://twitter.com/QuickswapDEX/status/1664184808547979265
A great longread about Lyra and how it operates:
https://www.tastycrypto.com/blog/lyra
Advanced strats on DeDeLend using Lyra
https://twitter.com/DeDeLend/status/1668582860750721026
Threads and mentions:
@Deebs_DeFi with some words about Optimism Ecosystem
@kenodnb about Synthetix, Kwenta and Lyra
@thatway_ox about Optimism Ecosystem drops
@ReveloIntel Lyra's Newport Release discussion
@DAdvisoor a talk about Lyra - Link
@Larpseidon about LYRA token
@lou_markets same
@CryptoMon99 some advises to delegators to reduse their exposure on OP
@GrowWithPassive Yield positions on Lyra
@litocoen also about Yield
Lyra's dominance is evident, and as we contemplate the expansion onto the Optimism network, we can understand the potential it holds. This Newport upgrade not only diversifies Lyra’s offerings in form of ARB and OP markets but also amplifies the opportunities for growth for Lyra.
Aevo is now in public mainnet
https://twitter.com/aevoxyz/status/1668884195731718145
Trading Competition on Premia
https://twitter.com/PremiaFinance/status/1668737601812201473
New incentive system on Dopex
https://twitter.com/dopex_io/status/1660661120095383552
Synquote launch on mainnet
BlackRock files Bitcoin spot ETF application
Voyager to enable customer withdrawals this month
Binance US cuts staff after SEC suit
Crypto trading Volumes drop in Q2 to yearly lows
OKCoin warned by FDIC over promotional material
Bitcoin drops to 3-month low
Tether depegs as Curve 3Pool becomes imbalanced
Fed pauses interest rates after 10 consecutive hikes
Crypto prime broker FPG loses up to $20M in cyber attack
Custodian Prime Trust’s payments subsidiary Banq files for chapter 11 bankruptcy protection
BTC’s supply on exchanges drops to 2018 lows
Uniswap upgrades to v4
Judge rejects SEC’s request to freeze Binance US assets
US inflation cools to 4% annual rate
Polygon unveils “Polygon 2.0” and value layer upgrade
Crypto investment funds see 8th consecutive week of outflows
Hong Kong lawmaker invites Coinbase to apply to operate in region
Binance US market depth declines 76% in June following SEC lawsuit
Robinhood’s May crypto trading volume falls 68% to $2.1B
Shiba Inu testnet blockchain 'Puppynet' crosses 20M transactions
US SEC files a lawsuits against Binance and Coinbase
More than 50 cryptocurrencies are now seen as securities by the SEC
Binance US halts USD deposits
Robinhood delists Solana, Cardano, Polygon, after SEC’s claims
Binance NFT marketplace announces support for Bitcoin NFT collections
EU’s landmark crypto law MiCA published in official journal
Stablecoin issuer Circle receives digital token license in Singapore
ENS to launch Web3 .box domain name in September
Fed chair says stablecoins are a form of money
Valkyrie updates its filling for spot Bitcoin ETF to list in Nasdaq
Circle restarts U.S. treasury purchases in BlackRock-managed USDC fund
Bankrupt hedge fund 3AC's return as a VC stirring up crypto community
Bitcoin price explodes to $29K, leaves $150M liquidated
$1.5 Trillion asset manager Invesco reactivates Bitcoin spot ETF filing
EDX crypto exchange launches backed by Fidelity, Schwab, Citadel
Deutsche Bank applies to German regulator for crypto custody license
Layer 2 Polygon wants to upgrade Polygon PoS chain compatible with zkEVM
HSBC, Mastercard file more crypto-related trademark applications
Fed сhair Jerome Powell will raise interest rates 2 more this year
BitGo cancels acquisition Prime Trust
Binance counterattacks SEC with lawsuit citing misleading claims
FTX has sued K5 Global, seeking to recover over $700 Million
Xapo crypto-friendly bank expands operations in South Asia