Before the upgrade, Lyra’s market maker vaults (MMV) paid swapping fees for every collateralization and hedging trade. For example, when a trader buys a call option contract on ether (ETH), Lyra’s MMVs would purchase ether from a spot exchange, incurring a fee. Once the trader’s position has closed, Lyra’s MMVs would sell back the ETH used for collateral, incurring yet another fee.
Options Automated Market Maker Lyra Deploys to Arbitrum Network
Written by Bankerage Published on February 4, 2023