The AMM will likely hold a very long delta position, due to its current inability to delta hedge: Lyra requires full collateralization, which means that for each long call that a trader purchases, the AMM will purchase one unit of the underlying asset (e.g. if a trader buys a 50 delta ETH call, the AMM will purchase one ETH to collateralize, leaving the AMM net long 0.5 ETH). Long call is the most common trade that has been observed on the platform so far, and we expect this trend to continue. Holding large delta positions is risky, particularly if this is repeated over a long time horizon. The Lyra core team will be publishing updates on the AMM's net delta so that LPs can take hedging actions individually if they so choose.