Lyra Documentation
This page describes Lyra's dependency on the Synthetix Protocol.
Lyra uses the Synthetix Protocol in three different ways:
  • As a settlement currency
  • As collateral for calls
  • For delta hedging
It is important to note that because of this, the risks of using Lyra include Synthetix protocol risk. Read more about such risks here.


All options are quoted, paid for, and settled with Synthetic USD or sUSD.


The AMM collateralizes the calls it sells with the relevant synth. For example, when the AMM sells an sETH call it will purchase 1 sETH from Synthetix. On expiry (or when the option is sold) the AMM will sell the sETH for sUSD and allow the option holder to settle.
The AMM also collateralizes puts with sUSD.

Delta Hedging

The protocol aims to keep the exposure of liquidity providers close to delta-neutral. It does this either by longing or short selling the underlying asset on Synthetix. For example, if the AMM is long 500 sETH deltas, it may short sell 500 sETH using Synthetix's short-selling functionality. Learn more about delta hedging here.