Lyra Finance, an exchange for decentralized options on an Ethereum-based L2 scaling solution named Optimism, recently announced integration with GMX. GMX is a platform for the trading of perpetual contracts. Lyra has declared its launch on the Arbitrum. On the official Twitter channel of Lyra Finance, the platform posted a long Twitter thread to share details about the move.
Lyra Finance Integrates with GMX and Goes Live on Arbitrum with New Upgrade
The platform mentioned that it is deploying Lyra Newport (a new upgrade for collateral management). With the respective upgrade, the community has been provided with several technical features along with other benefits related to usability. Lyra mentioned some of the most prominent benefits including “cash collateral,” “tighter spreads,” as well as “modular design.”
In the case of cash collateral, the company mentioned that the consumers will witness minimized charges for the AMM. While discussing the tighter spreads, Lyra disclosed that the traders will have lower fees to be paid. The 3rd important thing is modular design signifying that the platform will have extended deployment capability. Lyra asserted that the collateralization of short positions on the platform will be partially done by MMVs.
As per the firm, the cash will eradicate the requirement to recompense swapping charges for each delta hedge and trade. The respective costs were around $800,000 during the previous six months. Now, they will be moved to the liquidity providers, as per Lyra. In the platform’s words, because of the lower hedging costs and collateralization, tighter spreads will be witnessed.
Exchange Gets Increase Compatibility with L2-based perpetual Exchanges
The exchange disclosed that the hedging module of Lyra can presently have compatibility with any of the perpetual exchanges based on any Layer 2. The platform expressed enthusiasm to collaborate with GMX, utilizing preps to hedge Lyra-based MMVs’ delta exposure automatically. The company elaborated more on the latest Newport upgrade.
According to the exchange it has developed an options AMM for integration with the perpetual exchanges operating on EVM-compatible chains. This would pave the way for decreased charges to be implemented on the traders. In addition to this, liquidity providers can move capital efficiently.
Lyra MMVs, with the exclusive upgrade, are permitted to collateralize the short positions partially with cash. This eradicates the requirement for swapping to the core asset and rather uses perpetuals for the collateralization and delta hedge.