📊 Lyra Stats

November was a big month for Lyra as alot of stats hit All Time High (ATH)! 30d Notional Volume Hit an ATH of $98.7 Million. 30d Premiums hit an ATH of $~4.48million (almost twice the previous ATH).

30D Unique Traders hit an ATH in November with over 5,503 traders!

After some variance in returns the couple weeks, The ETH MMV has rebounded to +4.71% since its inception (June 28th, 2022) representing a monthly change of 23.6% (3.81% 30days ago).

The ETH Vault performance varied a bit during the volatility, but it recovered well. Over the last month it returned 6.69% (excluding inflationary incentives). The vaults have lost some TVL during the volatility, but this has translated into increased returns for those who have stuck around.

The 90-day performance annualized is 4.4%, annualized performance since inception is +10.7%. Depositors earn 10.79% rewards APY (boosted up to 21.6% for Lyra Stakers)

💹 Lyra Community Call

On November 10th, Lyra had their 12th Community Call on their discord. Checkout a great summary from The Lyra Short Put twitter account:

https://twitter.com/lyrashortput/status/1590864186623807488

🥕 Lyra LEAP Update

Leap-38: Lyra is going MULTICHAIN!!

A proposal to deploy Lyra on Arbitrum was just announced. Lyra will integrate with GMX as a source of liquidity to collateralize and delta hedge the AMM! Read this proposal here in LEAP-38

Leap-36 has been approved by the Lyra Council.

Leap-37 has been approved by the Lyra Council.

This leap will depreciate the SOL market on November 25th.

THE FTX Downfall

Vaults were fully utilized during this downfall, which validated a huge demand for Defi Options. Lyra hit 100% market utilization a few times during this. Lyra performed beautifully with no issues.

Fees generated by Lyra hit an ALL TIME HIGH with this volatility!

If the above chart doesn’t get you excited then take a peek at this one:

https://twitter.com/muir_eth/status/1592267466004393984

🔙 Lyra Grants Retroactive OP

The Lyra Grants DAO recently distributed 60,000 $OP tokens retroactively to the builders and users that helped build the Lyra community as stated in Lyra’s Phase 0 Optimism Proposal !

Polynomial and Brahama received the majority of the $OP tokens, due to their amazing ability to show the defi world how you can integrate with Lyra.

Checkout a full list of who received the $OP tokens below:

*As one of the members receiving this retroactive OP token distribution, (I imagine I speak for all the recipients) I am truly thankful and honored to be part of such a great community and protocol.

💻Council Nominations

The New Lyra Council and Grant Council Members have been selected, and will serve until March 1, 2023:

☄️ Lyra Workshop with Genesis Volatility

MUST LISTEN! The recording from when Greg Magadini spoke to the Lyra Community is out! Make some coffee and give it a listen! You will get some alpha from this call:

https://twitter.com/lyrafinance/status/1589393031958261760

🦘 Ecosystem News:

dHEDGE:

Checkout the latest dHEDGE newsletter

https://www.getrevue.co/profile/dhedgeorg/issues/dhedge-monthly-october-2022-1386295?via=twitter-card&client=DesktopWeb&element=issue-card

With the Toros Supercluster release, dHEDGE now includes the ability for managers to trade Perpetual Futures via Kwenta. Checkout the details below!

https://blog.dhedge.org/kwenta-futures-launch/

Toros:

Toros just announced their latest release, called Supercluster. Two new Dynamic Vaults on Optimism: Ethereum Yield and Market Neutral Yield Strategy. They also integrated Kwenta futures and Arrakis Finance!

The new Dynamic Vault on Toros built using Lyra is performing well with all this volatility!

https://twitter.com/torosfinance/status/1597361148609040385

https://twitter.com/torosfinance/status/1580708385473048578

Polynomial:

Make sure you claim your Polynomial Optimism Airdrop if you haven’t yet.

https://twitter.com/lyrashortput/status/1595775345017622528

The vaults keep printing yield for users! Checkout the vaults weekly performance:

https://twitter.com/PolynomialFi/status/1596147004047908865

Brahma:

https://twitter.com/BrahmaFi/status/1593653802980102144

⚔️Trading Corner

With Lyra incentivizing trading, now is the BEST time to trade DEFI Options with Lyra! With everything being on-chain now is a great time to see what the whales are doing:

Want to see how other traders are playing the market?

For those of you who don’t know you can go to the #Trades channel in the Lyra discord and check on the current trades of your favorite trader.

For an example you can type “/trader supermario.eth” into the channel and it pulls up

You can then select the traders address and it takes you to Lyra’s website where it shows you the traders Portfolio and Open Positions.

If you are new to trading Options, this is a great way to see how other traders are playing the market!

🧵 Notable Lyra Tweets

With the launch of Avalon and the OP incentives there has been a lot of talk on twitter about our beloved volatility engine! In case you missed them here are some of the good ones:

https://twitter.com/muir_eth/status/1590004155153666049/photo/1

https://twitter.com/laevitas1/status/1587821679471984642

https://twitter.com/0xmjs/status/1594108384739221504?s=46&t=_8tdbly8MW5WYShutNDMKg

https://twitter.com/getswype/status/1596171244411420677?s=20&t=2Zr9o8Uy3Qir0Lg4nufDXA

https://twitter.com/Slappjakke/status/1596493872850300929

LEAP Status Tracker

• LEAP-17: Establishing GrantsDAO, Status: IMPLEMENTED

• LEAP-18: Universal Closing and Partial Collateralization, Status: APPROVED

• LEAP-19: Launch SOL Market, Status: IMPLEMENTED

• LEAP-20: xLYRA Tokenomics, Status: DRAFT

• LEAP-21: Bridging Emissions Until Avalon, Status: IMPLEMENTED

• LEAP-22: Launch Aave Market, Status: APPROVED

• LEAP-23: Add Liquidity on Bancor, Status: IMPLEMENTED

• LEAP-24: OP Incentives Status: REJECTED

• LEAP-25: Incentivizing GrantsDAO, Status: DRAFT

• LEAP-26: Bridging Tokenomics until xLyra, Status: Approved

• LEAP-27: DevCo, Status: Proposed

• LEAP-28: Increase Council and Grants DAO Terms, Sync Elections, Status: Implemented

• LEAP-30: Reintroducing Short Collateral Trading Rewards, Status: Implemented

• LEAP-34: Simplifying Trader Rebates, Status: Approved

• LEAP-36: Cash Collateralized AMM, Status: Approved

• LEAP-37: Deprecate SOL Market, Status: Approved

• LEAP-38: GMX Hedging and deploy on Arbitrum, Status: Draft

• Lyra Learn

  • https://blog.lyra.finance/tag/learn/

• Lyra Docs

  • https://docs.lyra.finance/

• 🎉 Avalon • 📊 Lyra Weekly Stats • 🚀 Lyra Product Updates • 📝 Lyra AMM Performance update • 🏛 Genesis Volatility Lyra Video • 🌉 LEAP-26 – Bridging Tokenomics until xLyra • 🔬 Software Development Kit • 🦀 Ecosystem News • 💡 Optimism Phase 0 Update • 🎯 Grants Council • 📈 LEAP Status Tracker

Avalon:

It’s here! We’re proud to announce the most significant upgrade to Lyra yet, Avalon. If your not excited then watch the video below!

https://twitter.com/lyrafinance/status/1541581372267327488

Now live on Optimistic Ethereum, Lyra Avalon builds off the strong foundation established in V1 (Two-sided options markets, unified liquidity, composable delta hedging) with a suite of new features which will offer the best options trading experience that DeFi has ever seen.

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.

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.

Checkout the Avalon blog to get a detail summary of all of the new and exciting protocol features, developer tools, redesigned trading interface, security audits and more.

https://blog.lyra.finance/avalon-is-live/

Lyra Weekly Stats:

30d Active Traders: 835→ 1027 +23% from May to June Average Notional Volume by Trader: $37,718 Average Premium by Trader: $1,302

Lyra Product Updates:

On June 24th Jake gave us an update on Lyra’s Market Making Vaults

Access to Lyra’s marketing vaults UI are here.

Contracts have been redeployed post-audit, so traders will lose history for the last week. Make sure you message the team in #support if you believe your positions didn’t settle correctly.

Product updates!

Avalon docs, Including the Final Audit Reports, are live! Read there here:

https://docs.lyra.finance/overview/audits

A new landing page has been launched! Check it out here:

https://www.lyra.finance/

A new stats page can be found here:

https://stats.lyra.finance/

Make sure you checkout the #trades and #vaults channels as @/Ethboi/ created new bots!

Lyra AMM Performance update:

Now that nearly 9 rounds of trading are in the books, it's time to examine how the Lyra AMM has performed.

The below table shows the round performance of the ETH market pool, each round is typically 3-4 weeks, with Round 1 beginning on November 5th, 2021, and Round 8 ending on May 27th, 2022:

In the absence of delta hedging, the AMM is almost always long the underlying asset, and this has led to drawbacks in the value of the pool. In round 8 alone, the pool lost $1.58m in value, suffering $1.8m from the declines in the value of its held collateral. With delta hedging switched on, the PNL of the pool would have ranged between +$100,000 (+0.5%) and -$170,000 (-0.82%), depending on the assumed hedging frequency. This is a substantial improvement and a relatively healthy performance for the pool given disadvantageous conditions for the AMM (high volatility of implied volatility).

Delta hedging will be live for all pools during the Avalon release, so we will now fully examine how the ETH pool would have fared if delta hedging was switched on, isolating the options market-making component of the returns.

One takeaway from this graph is that the AMM has largely been profitable across rounds assuming that its deltas were hedged (!!). Hedging frequency is a balancing act between reducing risk (by hedging often) and minimizing hedging fees paid (by hedging less). Despite this, even during extremely volatile rounds (like round 8) the underlying mechanics of the AMM have yielded a fairly stable return profile assuming hedging occurs between every 3-48 hours. As the AMM is iterated upon with more sophisticated volatility surface modeling and capital efficiency, it’s very possible that these returns could markedly improve. Regardless, this is a strong foundation with which to proceed.

Conclusion

• The AMM has been live for 8 rounds (~7 months) and has largely suffered from declines in the prices of the underlying assets it’s traded, due to its underlying long delta bias

• The addition of delta hedging dramatically smooths the returns of the AMM

• If delta hedging had been live for the first 8 rounds, the AMM would have delivered positive returns for LPs, due to its position as the spread-taker in the market

• More data and rounds are needed to fully verify these claims, but version 1 of the protocol has yielded a strong start for the AMM

For the Full AMM Performance Update report checkout this Blog:

https://blog.lyra.finance/amm-performance-update/

Genesis Volatility Lyra Video:

With Avalon launching the guys at Genesis Volatility created this amazing video to discuss Lyra and everything you need to know including Avalon!

“…This might be the most sophisticated DEFI Options AMM Yet!…”

LEAP-26 - Bridging Tokenomics until xLyra:

Initially, xLYRA was aimed to launch shortly after the Avalon release, however auditing constraints have delayed the xLYRA launch until at least September. The protocol should not wait to implement these important mechanics, and this LEAP maps an implementable suite of changes that will support the protocol in its next phase.

Leap-26 Proposed reward rates:

• Staking module rewards: 15,000,000 LYRA/year (1.5% of total supply)

• LP / Trading rewards to be determined by the Council closer to launch date

Make sure you checkout the below on the full details on what passed with LEAP-26:

https://leaps.lyra.finance/leaps/leap-26/

Software Development Kits:

Lyra released two Software Development Kits (SDK) for those looking to get their code on; check them out below!

Here is the Protocol SDK so if you're building a dapp that integrates with LYRA this is the code you would use to do that.

Here is the Javascript SDK so if you want to build ETH transactions for from the web/ui layer instead of at the contract level you would use this.

Ecosystem News:

Polynomial Protocol V2 vaults:

Polynomial will be migrating vaults to Lyra Avalon in this update, along with instant deposits, multiple strikes, and partially collateralized vaults. They are expecting the vault upgrades to occur in 1st or 2nd week of July.

One click option strategies on Lyra for Pro Option Traders. Click below for joining the waitlist!

https://twitter.com/polynomialfi/status/1539519924665995264?s=21&t=x044gXPHFhFgnPLHrpNUZw

Lyra x velodrome:

The deeper the liquidity, the more volume. The more volume, the more fees go to Lyra! 113% APY for LPing on Velodrome.

https://twitter.com/VelodromeFi/status/1539697687829831681?s=20&t=rtnvxT6Frgwa2QCv2WlI8Q

Brahma:

PMUSDC_v2 Main Vault is now live! The current APY is at 13.99%. The vault deploys USDC capital into Curve’s stablecoin pools in order to generate yield. The weekly harvested yields are used to take trades on Lyra and Perp to provide boosted returns.

Checkout this awesome Twitter thread on the numerous upgrades and past performance:

https://twitter.com/BrahmaFi/status/1539997444846796800

Lyra - OPtimism Phase 0 update:

Voting cycle 1 closed on June 22. This voting cycle included Lyra’s proposal of how to distribute 3,000,000 $OP tokens, and it passed with flying colors!

https://twitter.com/OptimismGov/status/1540049300025114624

If you haven’t yet make sure you delegate your $OP tokens to Mike! You can do that here. Then select:

Grants Council:

Nominations for the second Grants Committee are now open! You can nominate yourself in the #grants-nominations, with applications closing July 1st.

The Grants Committee recognizes and rewards contributions from the community, and is a key pillar to the growth of the Lyra Protocol as a composable, permissionless primitive for on-chain options. The outgoing committee has done excellent foundational work and issued many grants (to developers and non-developers) focused on our Avalon release.

The incoming committee will be able to continue this work with an additional 600k $OP funding allocated from Optimism Collective Governance for builders on Lyra.

Wants to learn about the current grants? Checkout their webpage:

https://grants.lyra.finance/

Trader of the Month:

With the current market conditions, it is nice to see who thrives in this PvP environment. Trader: 0x864b81c40d8314d5c4289a14eb92f03b9f43b6bc

only had 13 trades opened with 6 trades settled, and brought in $182,624!

LEAP Status Tracker

• LEAP-17: Establishing GrantsDAO, Status: IMPLEMENTED

• LEAP-18: Universal Closing and Partial Collateralization, Status: APPROVED

• LEAP-19: Launch SOL Market, Status: IMPLEMENTED

• LEAP-20: xLYRA Tokenomics, Status: DRAFT

• LEAP-21: Bridging Emissions Until Avalon, Status: IMPLEMENTED

• LEAP-22: Launch Aave Market, Status: APPROVED

• LEAP-23: Add Liquidity on Bancor, Status: IMPLEMENTED

• LEAP-25: Incentivizing GrantsDAO, Status: DRAFT

• LEAP-26: Bridging Tokenomics until xLyra, Status: Approved

• Lyra Learn

  https://blog.lyra.finance/tag/learn/

• Lyra Docs

  https://docs.lyra.finance/

• 📊 Lyra Weekly Stats

• 🚀 Lyra Avalon Gated Launch

• 🏛 The Final LP Round

• 🐂 Alpha Leak - The Bull Case for Lyra

• 🔬 Lyra Avalon Analytics Dashboard

• 🦀 Ecosystem News

• 💡 Lyra Leaks

• 🎯 Lyra LEAP-24 update

• 🃏 Inaugural Optimism Poker Tournament

• 📈 LEAP Status Tracker

Lyra Weekly Stats:

7d Notional Volume: $12,030,383 → $4,469,573 -63% in the last two weeks 7d Premium Volume: $314,441 → $99,644 -68% in the last two weeks 30d Active Traders: 1,243 → 1,927 +55% from April to May Average Notional Volume by Trader: $103,648 Average Premium by Trader: $3,071

More active trader metrics can be found here.

Lyra Avalon Gated Launch:

On May 17th Lyra had a massive upgrade to its Volatility Engine with the gated launch of Avalon! For this phase Lyra will have:

• 1x ETH market with $300k DAO funds

• 2x boards expiring May 20th and May 27th (8am UTC)

• No LP or trading incentives

The goal of this phase is to ensure the protocol and dapp are behaving as expected before our public launch on June 17th. The Avalon upgrade will offer the best options trading experience DeFi has ever seen! Predictable, programmable, deep options liquidity that is available 24/7. Traders will now have access to:

• 100 strike/expiry combinations

• Partially collateralized options selling (3-4x improvements in yield)

Liquidity providers will:

• Be able to enter/exit the market maker vaults at any time

• Generate more fees thanks to partial collateralization

• Collect the lion’s share of liquidation fees generated on the protocol

In a virtuous cycle, this revamped experience will lead to more fees for LPs, driving even more AMM liquidity which in turn generates an even better venue for traders.

AVALON MIGRATION

Deposits to Avalon open on June 17 and trading restarts on June 21 along with trading + LP incentives.

Additional expiries up to June 17 will be added to the Avalon dapp for the next 3 weeks for continued beta testing. Access is still limited to those with the @Allowlist role and liquidity provision of $300k (with no incentives) will continue from the DAO. You can access the new trading experience here: https://avalon.app.lyra.finance/

https://twitter.com/lyrafinance/status/1526726512904286208

If you missed the Avalon Upgrade Primer you have to check it out! It discusses in detail three big breakthroughs in the protocol:

1. Anytime market-maker vault entry/exit

2. Rolling expiries out to 3 months

3. Partial collateralization for options selling

   https://blog.lyra.finance/avalon-upgrade-primer/

Final LP Round:

The next and final round of liquidity provision for Lyra's current version starts on Sat May 28, 8pm UTC, giving LPs a full 24 hours to move funds after the current round ends.

This final round will run for 3 weeks until June 17 before deposits open to Avalon - the new version of Lyra - and we say goodbye to the round system forever as we introduce anytime entry-exit for LPs!

Emissions for this round were decided by @Council in #🏛dao-chat and are as follows:

• ETH: 1,575,000 LYRA

• BTC: 450,000 LYRA

• SOL: 187,500 LYRA

• LINK: 112,500 LYRA

Alpha Leak - The Bull Case for Lyra:

Check out this conversation between David (Bankless) and Mike (godfather of Lyra), about how Lyra got started, the state of on-chain options, Avalon, and Layer 2 Ethereum:

Bear Market thoughts:

Are you feeling anxiety, nervous, depressed, or any other bear market symptoms? Rest assured your favorite Defi options protocol is not going anywhere!! Our favorite Pengu in discord shared some “alfa” to members about Lyra’s healthy runway and token allocations! Lyra has $5,300,000 of healthy runway to keep building and delivering.

Lyra Avalon Analytics Dashboard:

@Muir_eth has done it again! A new dashboard was created displaying everything you need to see since Avalon went live on May 17th.

https://twitter.com/lyrafinance/status/1528709629433090048?s=21

Ecosystem News:

Polynomial Protocol V2 vaults:

Polynomial will be migrating vaults to Lyra Avalon in this update, along with instant deposits, multiple strikes, and partially collateralized vaults. They are expecting the vault upgrades to occur in 1st or 2nd week of June.

https://twitter.com/PolynomialFi/status/1528784942616002561?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1528784942616002561%7Ctwgr%5E%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fmirror.xyz%2Fmastermojo.eth%2FMZS1Kise0QtTNE4jRXcgttKSzA_r-IsSICpzxFfLB9c

EthGlobal - HackMoney 2022

Fuerte takes gold at Hackmoney 2022 for best use of Lyra using the Covered Strangle Strategy. Read about it all here:

https://showcase.ethglobal.com/hackmoney2022/fuerte-covered-strangle-ixyd9

Velodrome:

Velodrome announced Lyra has one of their official launch partners! Velodrome is an AMM designed as a central trading and liquidity marketplace on Optimism.

https://twitter.com/VelodromeFi/status/1530898210465644550

Lyra Leak:

The best “alfa” in crypto is found on Twitter/Discord. This issue’s finds are too good not to share with our readers:

https://twitter.com/Kwenta_Thai/status/1528957396483117056?s=20&t=eb1QfdZzzASd71bk2gxBlA

LEAP 24 update- Optimism Incentives

The discussions regarding how Lyra will distribute their Phase 0 Optimism allocation have started up again in the Leap-24 discord channel.

Inaugural Optimism Poker Tournament:

Lyra is hosting a poker tournament to see which community on Optimism has the top poker talent!

https://twitter.com/lyrafinance/status/1529612213840883712?s=20&t=vI9k_B8SzdJKnN_usl4stQ

Trade of the Month:

With the current market conditions, it is nice to see how current Lyra traders do it. Checkout how this "put" played out for this trader:

https://twitter.com/muir_eth/status/1523839888189272064?s=21&t=yOYH9ppHa5htaV09rw4Kpw

LEAP Status Tracker

• LEAP-17: Establishing GrantsDAO, Status: IMPLEMENTED

• LEAP-18: Universal Closing and Partial Collateralization, Status: APPROVED

• LEAP-19: Launch SOL Market, Status: IMPLEMENTED

• LEAP-20: xLYRA Tokenomics, Status: DRAFT

• LEAP-21: Bridging Emissions Until Avalon, Status: IMPLEMENTED

• LEAP-22: Launch Aave Market, Status: APPROVED

• LEAP-23: Add Liquidity on Bancor, Status: IMPLEMENTED

• LEAP-25: Incentivizing GrantsDAO, Status: DRAFT

• Lyra Learn

  https://blog.lyra.finance/tag/learn/

• Lyra Docs

  https://docs.lyra.finance/

BRIDGES:

If you have your money on other Layer 1s, make sure you checkout all the different Optimism Bridges:

https://www.optimism.io/apps/bridges

OP TOKEN:

Folks have been trying to analyze the price prediction per $OP token, and the general consensus is between $1 - $10, with upwards of $23 due to low liquid supply - #L222

https://twitter.com/OlimpioCrypto/status/1526940448782266368

To see the current list of protocols that are in Phase 0 of the $OP Token distribution go here:

A few projects have already announced how they plan to to allocate their share of $OP, check them out below:

SYNTHETIX:

The heart and backbone of Optimism is being awarded 9 million $OP tokens. Current SIP#234 and SIP#242 discusses how Synthetix will distribute these tokens.

https://sips.synthetix.io/sips/sip-234/

SIP#242 provides more detail for liquidity incentives:

The key takeaway with Synthetix is to STAKE AS MUCH $SNX as you can!

Current yield (118.33%) plus OP Token Distributions = ALFA!

LYRA:

Lyra is getting 3 million $OP tokens to distribute. If you don’t know, Lyra is the first Optimism native project! Lyra has built a protocol, community and ecosystem on Optimism and has experienced the unique opportunities and the challenges of doing so in an Optimism native way. Lyra is an options AMM built on Optimism that offers deep liquidity across a wide range of strikes and expiries.

https://twitter.com/0xmjs/status/1521605081250299904

They have a proposal to the Optimism team on the forums here:

https://gov.optimism.io/t/gf-phase-0-proposal-lyra-finance/202

Their current distribution is divided into three groups; Builders, Liquidity, and Traders.

Head on over to Lyra’s website and start getting familiar with their protocol - so when the time comes you will be ready to trade and provide liquidity to get those $OP tokens!

https://www.lyra.finance/

If you are not familiar with Defi Options; I urge you to check out their blog posts on understanding Options

KWENTA:

Kwenta is being distributed 900,000 $OP Tokens. They have a current KIP out that details the current proposal. Kwenta will leverage the $OP token to drive Optimism adoption while relying on Kwenta’s tokenomics and unique product offerings to retain those users who migrate.

https://kips.kwenta.io/kips/kip-16/

A recent modification was mentioned in their discord where dYdX users who were left out of their token distribution due to geo-fencing are now being added to their $OP distribution!

https://twitter.com/kwenta_io/status/1519025824183296000

POLYNOMIAL PROTOCOL: Poly is getting distributed 900,000 $OP Tokens. Polynomial is built ontop of Lyra and Synthetix, and is a native Optimism project. Polynomial Earn is the first DeFi options vault that automates option strategies to earn yield, executing on-chain via an AMM on Optimism.

Their current proposal:

https://twitter.com/PolynomialFi/status/1526334708073775104

STARGATE FINANCE:

Stargate is eligible for 1 million $OP Tokens. They have submitted their proposal, and it can be found here.

https://twitter.com/StargateFinance/status/1526325737245900801

PIKA PROTOCOL:

Pika is being awarded 900,000 $OP Tokens.

Their current proposal is listed here:

https://hackmd.io/@ethdev007/BJbrEygPc

PERPETUAL PROTOCOL:

Perp is being awarded 9,000,000 $OP tokens. Their current Proposal is here:

https://gov.optimism.io/t/gf-phase-0-proposal-perpetual-protocol/201

1INCH NETWORK:

1inch is being awarded 300,000 $OP Tokens.

Their current proposal is:

and can be found here:

https://gov.optimism.io/t/gf-phase-0-proposal-1inch-network/655/3

THALES:

Thales is getting distributed 900,000 $OP tokens. They are still discussing on their discord how they plan to distribute their tokens. Thales Market is a trading platform built on Optimism and Polygon. Thales utilizes an AMM to host pools of collateral that pay out to holders of winning Positional Tokens.

Head on over and see the latest discussion: discord.gg/thales

Quick summary on OP distribution for Thales: If you use the protocol and stake you will get distributed $OP Tokens.

https://twitter.com/thalesmarket/status/1524736147943051265

AELIN PROTOCOL:

Aelin just announced AELIP-22 that covers their Optimism Proposal. Checkout their genius idea below:

SYNAPSE:

Synapse Protocol is a cross-chain communications network used to seamlessly interconnect all blockchains. Synapse has been awarded 1 million $OP tokens during Phase 0.

Their proposal can be found here:

https://gov.optimism.io/t/gf-phase-0-proposal-synapse-protocol/928

GELATO:

Gelato is web3’s leading smart contract automation protocol. They provide a decentralised network of bots used by web3 developers to automate smart contract executions on public EVM compatible blockchains - including Optimism. They are getting 300,000 $OP tokens distributed to them. Their proposal can be found here:

https://gov.optimism.io/t/gf-phase-0-proposal-gelato/873

CONNEXT:

Connext (connext.network) is a cross chain protocol that allows users to quickly and inexpensively transfer tokens and data across chains, and builders to create secure cross chain applications. It’s intended for high-frequency transfers and works by leveraging liquidity pools provided by routers on the sending and receiving chains without introducing any new trust assumption.

Connext has been the first protocol to connect Optimism and Arbitrum in a trustless way back in 2020.

Their OP Proposal can be found here:

https://gov.optimism.io/t/gf-phase-0-proposal-connext/851

WEPIGGY:

WePiggy is a multi-chain lending protocol. They are receiving 300,000 $OP tokens.

Link to proposal:

https://gov.optimism.io/t/gf-phase-0-proposal-wepiggy/437

IN THE AIR:

This article is constantly being updated as new information is received, so make sure you come back and check on the other protocols that have not yet disclosed how they plan to distribute their $OP Tokens.

Projects not yet giving details about how they plan to distribute $OP tokens:

Layer2DAO, Hop Protocol, Chainlink, Aave, Uniswap, and a few other non-OP native projects.

FOOD FOR THOUGHT:

I 100% guarantee you once you try out what Synthetix, Lyra, Kwenta, Thales, Aelin, Polynomial, and other projects on Optimism are doing - you will not want to leave this ecosystem.

This $OP airdrop/distribution was well thought out by the team, and encourages users to stay within the ecosystem. With that - enjoy the experience and stick around!

Tip: If you feel the need to tip - send any token on Optimism to my address: mastermojo.eth. I will use it to help fund a return trip with my boys in 2024 to Washington, where we will hike the Mt. Baker area again!

• Aelin Council Results

• Aelin Road Map

• Optimism Airdrop

• Treasury Report

• AELIP Updates

• Aelin Catch Up

• AELIP Status Tracker

Aelin Council Results

The Aelin Council election has concluded! Congrats to the five new council members:

@Alex the Lizard, @cb0x, @calavera, @samh, @SynthaMan

When Avalon is first released, the first two weeks will be a gated soft launch to test the new mechanism. Alpha traders who register and trade in the competition will be the only traders who have the ability to use the new dApp during this time. You have less than 48 hours left to register an address for the trading competition!

Aelin Road Map

Aelin has a busy roadmap for 2022. Recently the homepage just got updated, along with Pool 1/Pool 2/. UI/UX improvements are currently in the works.

Optimism Airdrop

The most thoughtful airdrop crypto has ever seen was spelled out late April by Optimism!

https://twitter.com/b0bby/status/1519005295611199489?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1519005295611199489%7Ctwgr%5E%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fmirror.xyz%2Fmastermojo.eth%2Fv5S2Z04wEN0PYV6RBz7CmWLD-2DfIeq6jGLRqn1DccI

If you were a Aelin user over these past couple months, Congrats! You got a portion of the airdrop, and potentially future airdrops!

What if Optimism does a community-led fundraising round ?!

https://twitter.com/iDecentralized/status/1516542235982004228

Treasury Report

The Aelin Council released their first Treasury report, in an effort and important step into providing transparency to the protocol. These reports will be created and announced to the community regularly. To find this report go here or checkout the below tables for treasury balances and treasury held deal tokens!

Treasury Balances:

Treasury held Deal Tokens:

AELIP Updates

Two of the most important AELIP’s for Aelin have just been published!

In the current state of the protocol, deal fees are collected and held by the Council which will then distribute the whole amount to AELIN stakers.

However, this means that there will be a lot of different deal tokens for stakers to claim, causing issues with gas and transaction fees and potentially making it nonviable to stake in small amounts. There is no point claiming dust from various tokens, multiple times a month.

AELIP-14 will address this issue by allowing stakers to claim AELIN, a single token. AELIN tokens will be bought at spot price by the protocol itself.

Moving forward, the 2% protocol fee on each deal will be collected in the underlying deal token (unwrapped), which will be placed in a 6-month escrow contract. Every quarter the Aelin Council will sell the deal tokens that have vested in the prior quarter to buy Aelin using a customized Aelin pool. Each quarter, 25% of the total AELIN collected will be distributed to stakers (30%), liquidity providers (50%) and to the treasury (20%).

It is crucial for these new tokenomics to be protected against people willing to game the staking and rewards claiming mechanism. This is why only a portion of the rewards coming from the cumulative buyback tokens (25% of the $AELIN) will be distributed quarterly, instead of the full amount. This will encourage stakers to hold their position for the long term in order to claim the entire share of rewards.

Read more - https://aelips.aelin.xyz/aelips/aelip-14/

The second proposed AELIP (NFT gated pools) allows sponsors that would now be able to create pools specifically for one or multiple NFT collection holders. The possibilities are endless when protocols can whitelist particular NFT collections for fundraising pools / NFT's are created as a way to whitelist investors!

NFT's can now serve as your entry ticket into early stage fundraising.

Read more - https://aelips.aelin.xyz/aelips/aelip-15/

https://twitter.com/aelinprotocol/status/1521220107648741376

If you missed the latest AELIP Presentation Call (for AELIP 16, 17, 18) you can check out the recording here:

https://anchor.fm/aelinprotocol/episodes/AELIP-16-17-18-Presentations-e1hlqrn

Aelin Updates

For those Liquidity Providers out there looking for some sweet APY - Aelin is one of the best! Currently on Ethereum Layer 1 the Aelin/Eth Pool is 208%

You thought the L1 pool was sweet - now checkout the Optimism L2 Pool. You can stake Aelin/Eth for 172% APY and also single stake for 37% APY! When you can claim rewards and then single stake for next to nothing, you can see why Optimism is the clear L2 winner.

A glimpse of the new UI was dropped! Check it out below!

https://twitter.com/aelinprotocol/status/1520524247852109829

AELIP Status Tracker

• AELIP-9: Balance + Aelin/Eth Pool 2 on Eth L1, Status: APPROVED

• AELIP-10: Re-enable Pool Transfer, Status: APPROVED

• AELIP-13: Incentivized Pools, Status: APPROVED

• AELIP-14: Updated Tokenomics, Status: VOTE PENDING

• AELIP-15: NFT Collection Whitelist, Status: VOTE PENDING

• AELIP-16: Vesting Schedule Starts When deal is funded, Status: VOTE PENDING

• AELIP-17: Aelip Rewards, Status: VOTE PENDING

Resources:

• Aelin Docs

  http://docs.aelin.xyz

• L222 Twitter Spaces with Synthetix

• Optimism Airdrop

• Lyra’s Alpha Trading Competition

• Avalon launch dates

• LEAP Updates

• The volatility engine is growing

• Council Nominations are live

• Liquidity Incentives

• Polynomial Update

• Lyra Catch Up

• Grants

• LEAP Status Tracker

L222 Twitter Spaces with Synthetix

On April 26 Synthetix hosted Kain, Lyra, and Polynomfial. Checkout the recording below:

https://twitter.com/synthetix_io/status/1519074179613609985

Optimism Airdrop

The most thoughtful airdrop crypto has ever seen was spelled out Tuesday by Optimism!

If you were a Lyra user over these past couple months, Congrats! You got a portion of the airdrop, and potentially future airdrops!

https://twitter.com/b0bby/status/1519005295611199489

Not even 24 hours after the OP Airdrop details - @Mike _/ Lyra proposed LEAP-24. It is currently being discussed in discord. Mike is proposing framework on how to DISTRIBUTE OP TOKENS TO LYRA USERS! Head on over and soak in the alfa or give your input!

Lyra’s Alpha Trading Competition

The trading competition is over! It has been an epic battle, and the top 10 has changed multiple times!

Hats off to our winner in the trading competition: @bioledad

Avalon update

Mark your calendar - in the latest Community Call it was leaked Avalon Soft Launch is May 18th, and full Mainnet Launch is May 31st barring no setbacks!

Lyra Enhancement Action Proposal (LEAP) updates

LEAP-23 proposes Lyra DAO creates and funds liquidity in a LYRA pool on Bancor. The Lyra DAO will purchase BNT to bootstrap the pool initially and then add LYRA tokens to the pool to seed its liquidity.

Bancor provides an excellent solution for protocol owned, L1 liquidity with zero additional emissions or incentives required. Once the initial liquidity is bootstrapped, Lyra DAO can add liquidity in LYRA up to the approved trading limit. Bancor allows for single-sided liquidity with 100% protection from Impermanent Loss after 100 days of liquidity providing. This pool gives LYRA holders the confidence that they can always efficiently buy and sell their LYRA on Bancor at any time on Mainnet.

Read more at:

https://leaps.lyra.finance/leaps/leap-23/

The volatility engine is growing every day!

It’s time to share another protocol building on top of Lyra. Brahma will be launching their ETH maxi DegenVault next week.

What is it? This vault allows you to deposit ETH on L1 which earns yield in your favorite yield aggregators: Yearn, Curve, Convex etc. This weekly yield is then used to open an options position using Lyra on L2 to enhance returns.

Lyra is creating a new design space and it’s exciting to watch teams like Brahma harness it’s power.

https://twitter.com/lyrafinance/status/1517249591108071424

Council Nominations are Live

Have your say in the DAO, and make sure you vote !

This is a big step forward for the community as Lyra moves toward a truly democratic governance process!

Liquidity Incentives

Synthetix and Lyra have launched liquidity incentives on Optimism!

12K $SNX and 50K $LYRA per week have been allocated towards bribes to veCRV voters to incentivize voting for the sUSD Curve pool! That’s right - It is currently the highest Bribe on bribe.crv.finance ! Now READ IT AGAIN!

https://twitter.com/synthetix_io/status/1517194744706715648

Polynomial Update

Both vaults expired “out of the money”. Each vault capacity has increased from $1Million to $1.5Million. Checkout the vault performance overview below:

https://twitter.com/PolynomialFi/status/1517463363223101440

Lyra Catch Up

Lyra has seen enormous success in 2021 with strong trading volumes, market-leading options spreads and recently, the launch of the LYRA token. These successes would not have been possible without the thriving community that has developed!

If you have not read it yet check out the 2022 Roadmap!

It’s a cliche, but Lyra really is just getting started with on-chain options. L2 2022 will usher in an explosion in DeFi usage and experimentation, and the Lyra volatility engine will be at the center of it all.

Liquidity providers can currently earn between 20% and 40% providing sUSD as collateral to delta hedge the options being sold:

ETH-sUSD pool APY: 26.67% LINK-sUSD pool APY: 26.74% BTC-sUSD pool APY: 21.84% SOL-sUSD pool APY: 32.76%

7d Notional Volume: $14,297,912 7d Notional Premium Volume: $232,895

Fee generation continues to climb for Lyra (Future xLyra holders should be excited).

In April Total Unique Daily Users climbed to 1,154, compared to 314 in March! Lyra continues to gain traction and show organic growth.

Users DGAF about a drop in emissions - Open Interest almost doubled from March to April!

For more stats check out Muir’s Dune dashboard:

For our chain sleuths If you're new to trading options it always helps to see how the big boys do it. Our top trader currently this month is:

0xfa923aa6b4df5bea456df37fa044b37f0fddcdb4

Lyra Grants

In March of 2022, the first Lyra GrantsDAO was elected by token holders to serve as a body for incentivizing community contributions and encouraging community members to build peripherally to the Lyra Protocol. The exact responsibilities of the Lyra GrantsDAO are outlined in LEAP-17.

Lyra will also release bounties for tasks that we think are a priority for Lyra protocol and encourage anyone looking to build on Lyra to comb through them for some reference, they can be found here: Request for Proposals

Currently, the Grants DAO is looking for Japanese, Russian, and Vietnamese translation teams.

https://twitter.com/EthBoi_/status/1519050779943915521

*Cover image meme credit via @JonasH _/

LEAP Status Tracker

• LEAP-17: Establishing GrantsDAO, Status: APPROVED

• LEAP-18: Universal Closing and Partial Collateralization, Status: DRAFT

• LEAP-19: Launch SOL Market, Status: IMPLEMENTED

• LEAP-20: xLYRA Tokenomics, Status: DRAFT

• LEAP-21: Bridging Emissions Until Avalon, Status: APPROVED

• LEAP-22: Launch Aave Market, Status: APPROVED

• LEAP-23: Add Liquidity on Bancor, Status: DRAFT

• Lyra Learn

  https://blog.lyra.finance/tag/learn/

• Lyra Docs

  https://docs.lyra.finance/