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The DeFi Investor🦇🔊 Profile picture
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Jul 29 • 9 tweets • 6 min read
/1 Are you looking for a DEX that allows you to earn >20% APR for providing stablecoins without impermanent loss risk?

You should take a look at @lyrafinance
, the best DEX for options on #Optimism🤩

A 🧵 on Lyra and the strategy I use to get traders' fees👇 Image
/2 Overview

Lyra is an options AMM that allows traders to buy and sell crypto options against a pool of liquidity.

The protocol uses Synthetix in 3 ways:
-options are quoted, paid for, and settled with sUSD.
-collateralizes the calls/puts with sETH/sUSD
-for delta hedging
/3 In order to establish the price of each option, Lyra takes into account 5 inputs:
• Asset price
• Strike price
• Risk-free interest rate
• Time to expiry
• Implied volatility

Lyra makes two-sided (buy and sell) options markets using the liquidity from ETH Vault.
/4 ETH Market Vault

Those who provide sUSD liquidity will earn all the fees collected by the protocol from options traders.

62k fees were generated in the last month.

If 62k fees will also be generated in the next months, it will result in 744k fees generated each year. Image
/5 ETH Market Vault has $3.5M TVL, so the liquidity providers are earning more than 20% APR sustainable rewards atm!

More than that, the protocol aims to keep the vault delta-neutral, so you shouldn't worry about the traders' PNL fluctuations.
/6 Vault Risks

-smart contract risk
-losses due to failed liquidations
-withdrawal delay(LPs may be unable to withdraw liquidity when most deposited funds are used)
-the delta hedging may not work well in case of a big market crash
There's 7 days cooldown for withdrawing funds.
/7 $OP Grant
Lyra DAO received a 3,000,000 $OP tokens grant for deploying Lyra on Optimism.

The DAO will decide if a part of these tokens will be distributed to the vault LPs in the upcoming days.

So on top of 21% APR rewards LPs may also receive additional $OP rewards soon🤯 Image
/8 Providing liquidity on Lyra is similar to providing liquidity on GMX.

But the vault on Lyra is delta neutral, so you don't have to worry about the traders' PNL fluctuations!

That's all!

If you found this thread helpful, please leave a like and retweet the 1st tweet. 🤝
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More from @TheDeFinvestor

The DeFi Investor🦇🔊 Profile picture
Jul 31
/1 Aren't you understanding how Umami USDC Vault generates 20% APR rewards?

"It must be a scam! 20% APR sounds too good to be true"

Let me explain to you how it works and why it isn't a scam.
A short 🧵 👇 Image
/2 Before speaking about the vault strategy, you must understand how GMX works.

GMX is one of the biggest decentralized perpetual DEXes. It requires a liquidity pool for swaps and leverage trading.

That pool is called GLP and GLP LPs receive 70% of all GMX traders' fees.
/3 On Arbitrum GLP liquidity providers receive 21% APR rewards in ETH and 6% in esGMX. The ETH rewards are coming only from traders' fees.

These rewards are SUSTAINABLE as long as GMX daily volume doesn't decrease/GLP liquidity doesn't increase.

Now back to Umami USDC Vault.
Read 8 tweets
The DeFi Investor🦇🔊 Profile picture
Jul 30
/1 Umami Finance is the first protocol that created a USDC Vault with a 20% APR sustainable rewards!

In just a few hours, the project first vault reached the $2.5M cap!

But this is just the beginning...

A 🧵 about Umami and its promising future👇 Image
/2 Overview

Umami started as a $OHM fork on Arbitrum. Bonding helped the project to increase its treasury holdings.

After most $OHM forks started to die, the project team decided to stop the $UMAMI emissions and focus on creating strategy vaults.
/3 But what is Umami doing with its POL(Protocol-owned Liquidity)?

Umami has around $5M in wholly-owned treasury liquidity.

These funds are mostly used to provide liquidity on Uniswap and for other strategies, with some being used to mint GLP. Image
Read 13 tweets
The DeFi Investor🦇🔊 Profile picture
Jul 28
/1 Want to be a liquidator and get your favorite tokens at a discount?

@TeamKujira is developing Orca - a protocol that will allow you to participate in the liquidation process with 0 coding knowledge🤯

Join me for a 🧵 on Kujira and its future👇 Image
/2 Overview

Kujira is defined as a Cosmos Layer 1 platform for community projects creating real value.

The team is developing 2 main products at this moment:
-FIN - an orderbook-style decentralized exchange
-Orca - the first public marketplace for liquidated collateral
/3 Kujira history

Orca is currently in development and will launch in the upcoming weeks on @KaruraNetwork
.

The project's first product was Orca on Terra, which quickly became one of the most popular protocols on Terra.

Orca allowed users to bid on Anchor liquidations.
Read 12 tweets
The DeFi Investor🦇🔊 Profile picture
Jul 27
/1 Have you ever wanted to leverage trade without worrying about the liquidation price?

If so, I have good news for you!

Let me present you @TracerDAO, the first protocol that allows leverage trading without liquidations🧵 👇 Image
/2 Overview

Tracer is a protocol on Arbitrum that makes derivatives contracts accessible to everyone.

A perpetual pool on Tracer is a bilateral derivative contract with transferrable positions.

Each long/short position is essentially a share of this pool.
/3 When a trader opens a leverage position on Tracer, he gets a long/short token that represents his position.

ETH price up 5% ->ETH 3x long token price up nearly 15%

You can even provide liquidity using these tokens on Balancer to earn swap fees!
Read 14 tweets
The DeFi Investor🦇🔊 Profile picture
Jul 26
/1 There's a debate on CT about whether @CurveFinance economic model is sustainable or not.

What are the benefits of the $veCRV tokenomics for the long run?

What will happen to Curve after $CRV emissions will run out?

A 🧵 on my thoughts regarding Curve's future👇
/2 Firstly, we have to understand why Curve Finance became so successful:
Curve is the perfect place for swapping tokens with a similar value because it allows trades with very low slippage.

In fact, 25.5% of 1inch aggregator volume was routed through Curve this month.
/3 Also, the popularity of Curve significantly increased after the launch of $veCRV tokenomics.

50% of all fees are given to $CRV lockers.

More than that, veCRV holders can vote on pool emissions.

So some projects decided to bribe veCRV holders to vote for their native pools.
Read 12 tweets
The DeFi Investor🦇🔊 Profile picture
Jul 25
/1 Do you think that the @GMX_IO team is building only a perpetual DEX?

The #GMX goals are much higher than you might think👀🚀

Join me for a 🧵 on X4 Protocol, a unique #AMM developed by the @GMX_IO team👇 Image
/2 Overview

GMX team plans to start working at X4 Protocol after GMX synthetics market goes live.

The team's vision is to build an AMM that gives pool creators and projects full control over the functions of its pool.

So how will be X4 different from a classic AMM?🤔
/3 Dynamic fees

Projects will be able to set pools fees to any % they choose. More than that, they'll be able to change them whenever they want.

Also, the fees for selling/buying a token will not need to be the same.

But how will these changes improve the trading experience?
Read 11 tweets

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