I can see the top Options dex hitting $1bn-$5bn valuations in the next few years in peak bull. This means some of them have 100x potential 👀

But which one will it be?

Let's take a look at what the @lyrafinance #LYRA Newport upgrade brings

#defi #options #optimism #lyra

Content

1️⃣ Lyra overview

2️⃣ Why was an upgrade needed?

3️⃣ What Is Lyra Newport?

4️⃣ Cash Collateralization

5️⃣ Modularity

1️⃣ Lyra overview

LYRA is an on-chain Options trading protocol based on an automated market maker (AMM) where you can buy/sell call or put options on #ETH, #BTC

Lyra was built on top of #SNX on #OP but has now expanded to arbitrum where it integrates #GMX

LPs provide liquidity in a MMV (Market Making Vault) which means they are taking the opposite side of the trade from the Options buyers, earning trading fees as rewards

Currently the Vaults offer 15-75% APR 👀 for providing options liquidity (with staked Lyra boost)

Users can deposit $sUSD or $USDC (depending on chain) and earn rewards on their stablecoin deposits

The vaults are also incentivized with $OP tokens on Optimism and with staked $LYRA on Arbitrum.

Staked Lyra also gives rebates for trading fees

But Lyra doesn't let their LPs take that enormous tail-end risk that usually comes with Options selling/LPing, and hedges the vaults exposure through perps and spot holdings

This allows the vaults to become close to Delta Neutral for LPs 👀

If a delta-hedge is performed, the AMM will either open a long or short perpetual futures position using the GMX protocol on Arbitrum or a spot synth position using the Synthetix protocol on Optimism.

Lyra is currently at a $38m mcap with $161m FDV

Token emissions are conservative

TVL is $28m

2️⃣ Why was an upgrade needed?

Before the upgrade, the Options sold by the MMV were collateralized and hedged with synth spot positions (sUSD or sETH)

This was expensive (30 bps fees) and very capital inefficient

3️⃣ What Is Lyra Newport?

Newport is an upgrade to Lyra that makes it possible to integrate with any perpetual exchange on any EVM compatible chain, providing lower fees for traders and better capital efficiency for LPs.

Newport will lead to

✅Improved capital efficiency for the AMM

✅Lower spreads and an improved trading experience

✅New opportunities with increased system modularity

4️⃣ Cash Collateralization

Lyra can now partially collateralize short positions with cash, removing the need to swap to the base asset and instead using perpetuals to collateralize and delta hedge.

This means that 70%-90% of the deposits in the MMV can be used as liquidity while the rest hedges and collateralizes the sold options

A large part of the profits of the MMV have been eaten up by trading fees for swapping collateral and hedges, so with the upgrade LPs will earn higher fees from the same volume

As the Cash Collateralization also reduces the MMVs exposure to the underlying assets there will be less trading fees spent on hedging the Delta

A 6.6x improvement in trading fees is expected

5️⃣ Modularity

By implementing a modular architecture Lyra can now easily expand to any EVM chain and any perp-dex

The first chain they have expanded to is Arbitrum, and I'm sure we will see more chains in the future to attract more users from other chains

This also allows Lyra to expand outside of the SNX ecosystem

I'm super excited to see what kind of integrations and partnerships can be developed on other chains 👀

6️⃣ Conclusion

Lower fees for traders, and higher rewards for LPers, this is a big step forward for Lyras hedged LP Vaults, their largest competitive advantage

#LYRA is not yet tradeable on Binance but you can bridge to Optimism or Arbitrum to get started

Remember that this is not financial advice, you have to DYOR

Some protocols never stop expanding

This one started as a stableswap, expanded to a cross-chain bridge, and is now expanding to become a Layer 2 rollup cross-chain execution layer 👀

Let me show you the final form of Synapse Protocol $SYN Synapse Chain

#SYN #Crosschain #bridge #Layer2 #defi

Content

1️⃣ What is Synapse?

2️⃣ Cross Chain Messaging

3️⃣ Synapse Chain

4️⃣ Upcoming Catalysts

5️⃣ Revenue sharing

So lets get into it..

1️⃣ What is Synapse?

It's not "just another bridge", at least not for long..

Synapse Protocol is a universal cross-chain protocol connecting EVM and non-EVM chains via generalized message passing

It supports cross-chain asset movements, smart contract execution, and NFTs

Synapse uses different transaction types for bridging different assets

✅ Nexus

For established stablecoins and ETH, Synapse uses "nexus", which has liquidity pools on all the supported chains for bridging the assets

Users can LP on these chains to earn $SYN rewards

Assets are swapped to nUSD or nETH, bridged, and swapped back to the asset selected by the user via LP on the destination chain

Users are also airdropped a small amount of gas on the destination chain making for a much smoother bridging experience to new chains

✅ xAssets

Synapse can move assets by locking assets in a smart contract on the origin chain, and minting xAssets on the destination chain.

This is used when a coin wants to get a multichain presence, and chooses Synapse as their main bridge

✅ Synapse's Evolution

Synapse started out as a stableswap Nerve Finance on #BSC #BNB

Since then it has evolved into the bridge we know today.

And very very soon it will evolve into a L2 Synapse Chain 👀

✅ Some numbers..

☑️ $SYN currently has a marketcap of $278m

☑️ FDV is $366m

☑️ TVL is $202m

☑️ Synapse is available on 17 different chains

2️⃣ Cross Chain Messaging

Synapse can also facilitate cross-chain messages between chains. For example a contract call can be initiated on the origin chain, and executed on the destination chain

This framework unlocks a lot of potential for interoperability.

Building on Synapse, developers can build truly cross-chain applications including:

☑️ DEX

☑️ Lending platforms

☑️ Margining systems

☑️ Derivatives markets

☑️ Yield aggregators

☑️ +++

✅ Optimistic Security Model

Synapse uses an Optimistic security model to ensure integrity of cross-chain messages

Guards observe cross-chain messages and submit fraud proofs if a malicious state is detected.

Read more here:

https://docs.synapseprotocol.com/protocol/optimistic-verification

3️⃣ Synapse Chain

Synapse Chain will be built on top of Ethereum as a Optimistic Rollup Layer 2 scaling solution

Synapse Chain is an EVM compatible blockchain, built to become a sovereign execution environment for cross-chain applications

After requests from cross chain developers, Synapse have built the Synapse chain to give a programming environment specifically suited for cross chain messaging systems

The cross chain business login is much more efficient when hosted on a single execution environment

Attestations from the Synapse security system for validity of cross chain transactions will be stored on Synapse Chain and rolled up to Ethereum L1 in batched transactions.

With all cross-chain msgs validated in a single environment, there is no need to maintain and update the contracts on all chains for every single cross chain msg

This allows for users to interact with state in an atomic way, even if it’s deployed across various chains

There are plans to utilize the $SYN token as a bonding mechanism in PoS governance

Synapse plan to decentralize their sequencer in alignment with roadmaps of other Optimistic Rollups

Wen Synapse Chain? Most likely in Q1 2023

4️⃣ Upcoming Catalysts

✅ Synapse Chain

✅ One of the cheapest L2s by FDV

✅ Single side staking and real yield

✅ Airdrops from ecosystem projects?

✅ Upcoming cross chain comms narrative

5️⃣ Conclusion

Excited to see what Synapse Chain can bring into the layer 2 ecosystem, will any developers build on top of synapse?

I will be here to find out!