Lyra Documentation
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External dependencies

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.
It is important to note that because of this, the risks of using Lyra include Synthetix / GMX protocol risk. Read more about such risks here.

Delta Hedging

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 Synthetix or GMX. 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.