LyraDAO Obtains $1m From SynthetixDAO

LyraDAO finally announced securing a generous contribution of $1M from SynthetixDAO. Since the introduction of DAOs, along with NFT and DeFi projects, Synthetix has become a pioneer of DeFi by operating its multibillion-dollar protocol of deploying DAOs. Lyra is new to the industry of DAOs, and it primarily focuses on bringing the last remaining primitive projects of DeFi on-chain. 

Recently, LyraDAO raised revenue of $3.3M from the biggest DeFi venture capital corporations, including ParaFi Capital, Framework Ventures, Magnet Capital, Apollo Capital, Robot Ventures, Orthogonal, Divergence, and DeFi Alliance. Lyra is renowned across the world as the foremost options protocol that can manage risks for liquidity providers and enable them to provide the best liquidity and pricing offers to the traders. The Ethereum Layer 2 protocol, Optimism, runs on Lyra and enables the platform to be the leading protocol for actively managing liquidity risks and executing instant transactions. 

Currently, Lyra is operating online at Optimist Kovan Testnet. The registered users of Lyra can reach out to one another through MetaMask to take a tour of the platform. On the other hand, Synthetix seeks to launch its own platform based on Optimism Layer 2 protocol very soon. SynthetixDAO is currently looking forward to offering seed funding for the development of its platform. The funding will enable the team of developers at SynthetixDAO to reach the monetization phase of developing the project. At present, there is no mechanism to obtain the fee amount for binary options trading during the Trading Phase at SynthetixDAO. However, projects are allowed to obtain fees from binary options trading at different marketplaces. 

Through the partnership, LyraDAO shall leverage the layer 2 scalability solutions and composability of SynthetixDAO to create a marketplace for permissionless, risk-managed options for liquidity providers and DeFi traders. Together, the two platforms shall empower the community of DeFi with unique and innovative financing opportunities. The partnership shall enable Lyra to use the scalability of the Layer 2 protocol of SynthetixDAO to offer the traders innovative opportunities of handling risks. 

The D2D activities of the two platforms shall forge new communities and enable the creation of options AMM without the need for a liquid spot market for collateralizing options and hedging the risks of liquidity providers. Beyond the level of operation of the protocol, the platforms of Synthetix and Lyra share the same communities of members, convictions, and values. The D2D activities shall enable the stakers of Synthetix to rake in fee revenue for engaging in options trading at Lyra. The stakers of Synthetix shall also receive compensation for providing capital to the hedging of deltas for the liquidity providers of Lyra. The platform of Synthetix offers a composable and robust protocol for derivatives liquidity to make sure that platforms like Lyra can erect the future frontiers of decentralized finance.

Trevor Holman

Trevor Holman follows crypto industry since 2011. He joined CryptoNewsZ as a news writer and he provides technical analysis pieces and current market data. He is also an avid trader. In his free time, he loves to explore unexplored places.

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