This page describes Lyra's dependency on the Synthetix and GMX.
Lyra uses the Synthetix Protocol on Optimism and GMX on Arbitrum as an external dependency for delta hedging the AMM.
The protocol aims to keep the exposure of liquidity providers close to delta-neutral. It does this by either opening a long or short perpetual futures position through GMX or spot synth position through Synthetix. For example, if the AMM is long 500 ETH deltas, it may short 500 deltas with a perpetual to maintain delta-neutral exposure. Learn more about delta hedging here.