Welcome to the second edition of the "Lyra QMonthly Report"! We are thrilled to bring you more valuable insights and updates about Lyra, saving you the hassle of searching for alpha threads on Twitter and avoiding rate limitations (I got rate limited 9 times). Buckle your fuckles and let’s go!
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
We are still in the phase of the market with high volatility and high losses for users because of it. The effects of high market volatility on crypto markets have led us to increasing Volume on Arbitrum and decreasing after 3 waves of liquidations. But for Optimism it was only about increasing volume, significant shifts in trading volumes across two chains can be explained by Bedrock update and various markets on Optimism that Arbitrum can’t give.
Arbitrum VolumeAverage Monthly Volume - $66,105,040 (-2.94%)Total Cumulative Volume - $396,630,241
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
July - $56,081,037 with -35.91% monthly drop
The first decrease in volume for Arbitrum markets is caused because of ATH in liquidations, outflow of traders to Optimism markets and low volatility after that. With new markets like the upcoming XRP listing, we can expect an equal Arbitrum Volume to what we have now.
Optimism Volume
Now we can start to compare months for Optimism markets, and we already have humongous growth in Volume!
Average Monthly Volume - $20,199,721Total Cumulative Volume - $40,399,443
June - $13,131,163
July - $27,268,280 with +107.66% monthly growth
We can expect a future outflow of capital from Arbitrum to Optimism because of:
Better LPing
Higher rewards (TVL to Volume) and better pool peroformance
More markets
Cheaper and faster execution of trades
For this month Volume has risen from $353,680,367 to $437,029,684. The major part of Volume still comes from the Lyra's Arbitrum network integration. The Optimism integration of the protocol is now nearly half of the Arbitrum Monthly Volume. It sits with $27,268,280 for Optimism vs $56,081,037 for Arbitrum.
Arbitrum Fees
Average Monthly Fees - $83869.6Total Cumulative Fees - $503,218
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
July - $61,966 with -38.79% monthly drop
No anomalies during this month that gave a major part of all fees like we saw in May but still a decent result with a small decrese for second month in a row and this is not a good sign.
Optimism Fees
June - $16,793
July - $33,020 with +96.63% monthly growth
Newport Optimism integration has indeed proven to be a significant step, and its initial performance has surpassed expectations with x3 growth compared to June results. Cost-effective transactions and new markets are game changers for Lyra.
And with current traction and success Lyra achieved just the beginning of Optimism markets growth. We can expect to see approximately an additional $1,000,000 in Volume per exotic market (OP and ARB markets have ±$1m in 30d Volume)
Arbitrum Users and Trades
Average Monthly New Traders - 822.2 Average Monthly New Trades - 4666.1 Total Cumulative Traders - 4,326Total Cumulative Trades - 27,997
(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
July - 215 new Traders with 3,649 Total Trades (6.47 Trades per Trader)
July - -25.61% drop for amount of Traders with -31.46% drop 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, which was caused by quest.
Optimism Users and Trades
Average Monthly New Traders - 868.5Average Monthly New Trades - 2,173Total Cumulative Traders - 458Total Cumulative Trades - 4083
June - 274 Traders with 1,737 Trades (6.33 Trades per Trader)
July - 184 Traders with 2,346 Trades (8.91 Trader per Trader)
July - -32.85% drop for amount of Traders with +35.06% growth in the amount of trades made
The user ratio for Arbitrum to Optimism is approximately 2.5:1 for June, indicating Arbitrum's higher adoption. However, when considering trades throughout July, the ratio is 1.55:1, indicating a narrower gap and raising adoption of Optimism markets.
For Arbitrum
On June 26th, we witnessed an ATH liquidation of -$225,000. Following this ATH liquidation, the market experienced two additional waves of liquidations. On June 30th, a wave of -$47,000 liquidation occurred. A week later, on July 7th, a third wave of -$26,000 liquidation struck the Lyra’s markets.
For Optimism
For Optimism we can see a bit more optimistic situation where users were right about the future price movements and overally they are net positive.
As you can see, we have the lowest volatility for the last 2 weeks, right after the first liquidation (26.06). And once again, as you can see in the picture, we have the Tightest Bollinger bands since the start of the Year. This situation often precedes a big pump or dump. Because of this PA, we can expect big liquidations and growing OI after this PA. But for now, traders are trying to stay vigilant and calm with their trades in the current market.
Full report from glassnode - Link
For Arbitrum
For Optimism
Despite the low volatility, traders on Optimism have remained active, seeking profitable trading opportunities as reflected by the normalised OI of approximately $4 million. This level of OI indicates that traders are actively participating in the market and holding positions, anticipating future price movements. As the market continues to surprise us, we can expect even more activity and interest on Optimism markets as traders seize opportunities.
+-------------------------+---------+-------------------+
| Vault/Liquidity | TVL | APY |
+-------------------------+---------+-------------------+
| stkLYRA | | APY 4.67% |
| ETH Vault (Arbitrum) | $9.79m | 9.67% - 19.34% |
| WBTC Vault (Arbitrum) | $3.66m | 21.16% - 42.3% |
| ETH Vault (Optimism) | $4.68m | 11.11% - 22.23% |
| WBTC Vault (Optimism) | $707k | 10.63% - 21.27% |
| ARB Vault (Optimism) | $611k | 12.19% - 24.37% |
| OP Vault (Optimism) | $763k | 9.67% - 19.34% |
| Arrakis (Ethereum) | $918k | 48% |
| Camelot (Arbitrum) | $164.5k | ?% |
| Velodrome (Optimism) | $40.3k | 5.48% |
+-------------------------+---------+-------------------+
Not a lot of News from Lyra, but we have a lot of CT activity!
First Delegate Race
https://twitter.com/lyrafinance/status/1678611743214555137
Proposal to add XRP markets
Bug bounty for Lyra on Hats.Finance
Big thread about Lyra’s future (Lyra team has not officially denied or confirmed this info)
Threads and mentions:
Lyra is still dominant. Optimism Newport upgrade unlocks immense potential for growth. With future zkPolygon and XRP markets on OP chain we can expect even better results.
The Panoptic gated launch sign-up list
https://twitter.com/Panoptic_xyz/status/1676622322298679296
Aevo dropped own referral system
HSBC enables BTC and ETH ETF investment for customers in Hong Kong
Indonesia labels 501 cryptocurrencies as commodities
Japan softens tax stance on cryptocurrencies
Near Foundation partners with Alibaba Cloud
FTX's current management has recovered $7 billion in liquid assets
TrueUSD’s reserves were attested by former FTX.US accounting team
Fidelity joins the battle for Bitcoin ETF supremacy
Nevada regulator filed to take over Prime Trust crisis company
European Union agreed on cryptocurrency bank capitals
Swiss National Bank will do a test run of CBDCs
Binance EUR banking partner to halt support of the crypto exchange in September
Microstrategy has purchased 12,333 more bitcoin for about $347 million, growing its cryptocurrency holdings to 152,333 BTC
FTT explodes 35% on FTX revival idea
Ledger unveils Tradelink: a custodial crypto trading platform tailored for institutions
Tether signs cooperation agreement with the Government of Georgia
UK passes bill establishing crypto and stablecoins as regulated financial activities
Fidelity officially filed an application for a spot Bitcoin ETF with the SEC
Central Bank of Korea to test CBDC payments for private sector In 2024
Canadian ETF issuer 3iQ to work with Coinbase to offer ETH staking in its funds
Paxos gives USDP stablecoin access to Mexico with Mercado Libre partnership
BlackRock Bitcoin ETF application refiled
Gemini’s Winklevoss demands $1.47 billion payment from DCG in ‘final offer’
Crypto ATM operator Bitcoin depot debuts on Nasdaq
Singapore requires crypto companies to hold customer funds in a trust
Thai SEC introduces new rules for digital asset providers
Binance Australia offices searched by regulator as part of derivatives probe
UK Lords pass bill to help seize and freeze crypto used for crime
Revolut to delist Solana, Polygon, and Cardano due to SEC lawsuit
Singapore Bank DBS starts e-CNY collection platform
South Africa sets licensing deadline for digital asset exchanges market
BlackRock CEO says crypto is digital gold and "Bitcoin is an international asset."
Valkyrie refiles for spot Bitcoin ETF with Coinbase
CFTC concludes Celsius and former CEO violated US regulations
Circle considers issuing stablecoin in Japan under new rules
Saxo Bank ordered to liquidate its portfolio of crypto assets by danish regulator
Multichain potentially compromised in a major exploit exceeding $126 Million
Kraken co-Founder Jesse Powell is under FBI investigation
Top Binance execs leave company over CZ’s handling of DOJ investigation
US Homeland security returns $314K from 2016 Bitfinex hack
Namibia now legalizes crypto and digital assets
HK government will introduce stablecoin regulation next year
Arkham has apparently been doxxing users for months
South Korea to set clear accounting standards for virtual assets
UK shuts down 26 crypto ATMs following coordinated investigation
Dubai takes enforcement action against Middle East crypto exchange BitOasis
Cboe enters agreement with Coinbase for spot Bitcoin ETFs
Microsoft partners with Axelar to boost integration of Web3
FTX introduces customer claims portal
Celsius files lawsuit against StakeHound over $150 Million token dispute
DOJ arrests senior security engineer for stealing over $9 Million in crypto
Europe’s first Bitcoin ETF finally launches
US Government transfers $300 million worth of seized Silk Road bitcoins
Digitex founder ordered to pay $16M to resolve CFTC action
EBA publishes stablecoin issuance guidelines under MiCA regulation
Vanguard increases investments in Bitcoin Mining
XRP becomes 4th largest crypto after Ripple's partial win over SEC
Celsius Network reaches $4.7 billion settlement over fraud allegations
Fidelity fires up Bitcoin ETF race with resubmission amid Wall Street frenzy
Polygon proposes token switch from MATIC to POL for more utility
Multichain's CEO was arrested, team to shut down Multichain
Thanks to Lyra’s team for supporting this content!