Deploying XRP Market on Newport Optimism

Lyra Request For Comment (LRFC)
1

Simple Summary

Launch an XRP market on the Optimistic Ethereum, using SNX Perps V2 market as the hedging venue.

Abstract

This LRFC proposes launching the XRP market on the Optimistic Ethereum deployment. It will be initialized with four boards which expire 7, 14, 21, and 28 days following launch (all at 8 am UTC time). Each board will have several strikes listed as required for a functional market.

Motivation Lyra’s AMM mechanism generalizes to any asset with a liquid spot market. XRP is now tradeable on Synthetix’s perps V2, as such, the addition of an XRP market would increase the range of assets available to traders. As well as allow hedging by XRP holders to hedge their exposure.

Motivation

By launching an XRP market on Optimism, we can expand the available assets for traders and enable XRP holders to hedge their exposure effectively. Adding the XRP market to the existing infrastructure aligns with our goal of offering diverse trading opportunities to the Lyra Ecosystem.

Specification

Overview

The work required to launch the XRP market will not require additional contracts compared to the already deployed markets. The process for launching will require periphery updates to the surrounding infrastructure.

Incentives

There will be no incentives for this market, the market will not begin trading until at least 200k USDC has been deposited into the vault. If incentives are needed for the market to function this can be amended in a later LRFC proposal.

Rationale

This LRFC proposes launching the XRP market alongside the ETH, BTC, OP, and ARB markets. The previously launched markets on the new, Newport version have been performing as expected, and adding additional markets to the optimism deployment will give traders an increased range of assets to trade against.

Technical Specification

Liquidity: The XRP market will be deployed in deposit-only mode with a 3-day period allowing for capital to move into the pool before trading is subsequently opened.

Options will be listed with 7, 14, 21, and 28-day expiries from launch.

Test Cases

Optimism Markets

BTC: Lyra Interface | Decentralized Options Liquidity

ETH: Lyra Interface | Decentralized Options Liquidity

OP: Lyra Interface | Decentralized Options Liquidity

ARB: Lyra Interface | Decentralized Options Liquidity

Configurable Values

Configurable values will be initialized to have a similar surface to the OP surface.
The exact Params coming soon…

2 Likes
2

I am in favor of this proposal.

3

In favour to deploy XRP vault.

My comments to be considered would be:

  • Cap the initial vault to max. 500k USDC.
  • Allow deposits only for $stLYRA holders.

The max. cap corresponds to the idea that similar vaults (ARB, OP…) are not reaching high utilization and Lyra DAO is paying too much to incentivize deposits that are not efficiently used. If high utilization is reached later, the cap could be lifted.

As per limiting it to $stLYRA holders, it increases the value of staking $LYRA and promotes the liquidity providers to maintain a long term alignment.

1 Like
4

I’m not in favor of gating deposits to $stLyra holders, it would require major changes to the contracts to achieve this. It may also require an additional audit which would add additional time and cost. When it comes to liquidity it might be best to minimally incentive this fault to ensure that the amount of liquidity matches the overall utilization. The dao could also potentially not even incentivise the vault to see if there is enough interest in providing liquidity with out rewards.

5

Support this with minimal incentives.