Lyra DAO Finance Raised $3.3 Million for Ethereum Layer 2 Options

0
58
Lyra DAO Finance Raised $3.3 Million for Ethereum Layer 2 Options
Lyra DAO Finance Raised $3.3 Million for Ethereum Layer 2 Options

The latest Decentralized Finance (DeFi) protocol to attract large venture capital investors is Lyra, which plans to trade Layer 2 options on Ethereum.

Lyra announced the success of this funding round on her blog on July 26th. The $3.3 million financing round was jointly led by major venture capital firms including DeFi, Framework Ventures and ParaFi Capital.

Other contributors are DeFi Alliance, Divergence, Orthogonal, Robot Ventures, Apollo Capital, and Magnet Capital. Many celebrities also contributed, including the founders and co-founders of Aave, 1inch, and Synthetix, as well as Ryan Sean Adams of Bankless and Anthony Sassano of The Daily Gwei.

Lyra claims to be the first option agreement that controls risk for its liquidity providers and enables traders to offer competitive pricing and liquidity.

Options are a bit like futures in that traders can buy contracts that give them the “option” to buy or sell the underlying asset at a specific price (called the strike price) at a specific time.

DeFi Option on Ethereum L2

The protocol is deployed on the Ethereum Layer-2 expansion platform (Optimism), which uses optimistic aggregation to scale throughput. This move makes Lyra the first active risk management agreement backed up by automated trading on the Synthetix derivatives trading platform.

Michael Anderson, the co-founder of Framework Ventures, praised the innovation of the project and said it raised the bar for the industry to new heights.

“By leveraging layer 2 scalability with Synthetix composability, Lyra enables a truly permissionless risk-managed options marketplace for DeFi traders and liquidity providers.”

Santiago Roel Santos, a partner at ParaFi Capital, added that options have always been the missing core of the DeFi stack. Michael Spain, the co-founder of Lyra, stated that option agreements struggle to provide competitive pricing and liquidity because level 1 risk management is too expensive.

Lyra is currently online on the Optimism Kovan Testnet and users can connect through MetaMask to explore the platform. No official date has been given for the mainnet launch.

Synthetix plans to launch its own optimism-based Layer 2 platform this week.

Thales Introduces L2 Binary Options

Lyra isn’t the only platform that deals with the second level option scenarios. On July 13th, the binary options platform Thales closed the first DAO financing round in the amount of $2.5 million. Framework Ventures jointly led this funding round with many others.

Thales also intends to use the Synthetix protocol to support the market for more than 60 different assets. This includes cryptocurrencies, commodities, stocks and index products, which are then expanded to the sports market.