Lyra

Simple Summary

Launch an XRP market on the Optimistic Ethereum, using SNX Perps V2 market as the hedging venue.

Abstract

This LRFC proposes launching the XRP market on the Optimistic Ethereum deployment. It will be initialized with four boards which expire 7, 14, 21, and 28 days following launch (all at 8 am UTC time). Each board will have several strikes listed as required for a functional market.

Motivation Lyra’s AMM mechanism generalizes to any asset with a liquid spot market. XRP is now tradeable on Synthetix’s perps V2, as such, the addition of an XRP market would increase the range of assets available to traders. As well as allow hedging by XRP holders to hedge their exposure.

Motivation

By launching an XRP market on Optimism, we can expand the available assets for traders and enable XRP holders to hedge their exposure effectively. Adding the XRP market to the existing infrastructure aligns with our goal of offering diverse trading opportunities to the Lyra Ecosystem.

Specification

Overview

The work required to launch the XRP market will not require additional contracts compared to the already deployed markets. The process for launching will require periphery updates to the surrounding infrastructure.

Incentives

There will be no incentives for this market, the market will not begin trading until at least 200k USDC has been deposited into the vault. If incentives are needed for the market to function this can be amended in a later LRFC proposal.

Rationale

This LRFC proposes launching the XRP market alongside the ETH, BTC, OP, and ARB markets. The previously launched markets on the new, Newport version have been performing as expected, and adding additional markets to the optimism deployment will give traders an increased range of assets to trade against.

Technical Specification

Liquidity: The XRP market will be deployed in deposit-only mode with a 3-day period allowing for capital to move into the pool before trading is subsequently opened.

Options will be listed with 7, 14, 21, and 28-day expiries from launch.

Test Cases

Optimism Markets

BTC: https://app.lyra.finance/#/trade/optimism/wbtc-usdc

ETH: https://app.lyra.finance/#/trade/optimism/weth-usdc

OP: https://app.lyra.finance/#/trade/optimism/op-usdc

ARB: https://app.lyra.finance/#/trade/optimism/arb-usdc

Configurable Values

Configurable values will be initialized to have a similar surface to the OP surface.