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July 09, 2024

Lyra Partners With Ethena Labs To Offer Users ETH Upside Exposure, Earning 2.5 Times sUSDe Returns When ETH Rises

In Brief

Lyra partnered with Ethena Labs to offer users increased exposure to ETH gains without the risk of initial capital.

Lyra Partners With Ethena Labs To Offer Users ETH Upside Exposure, Earning 2.5 Times sUSDe Returns When ETH Rises

Derivatives decentralized exchange (DEX) Lyra announced it has partnered with Ethena Labs, a protocol focusing on the yield-bearing USDe stablecoin to offer users increased exposure to ETH gains without the risk of initial capital. The strategy enables users to earn 2.5 times the sUSDe yield during ETH price increases and maintain the sUSDe yield when ETH prices remain stable.

This strategy involves purchasing bull call spreads using the sUSDe yield from the previous week, providing leveraged exposure to ETH based on user yields. It is particularly effective in bullish market conditions.

A bull call spread is a straightforward trading strategy comprising two elements: a long call with a strike price of K1 and a short call with a strike price of K2, where K2 is higher than K1. The maximum profit potential for a bull call spread equals the difference between the two strike prices (K2 – K1), realized if the asset price is at or above K2 upon expiration.

It provides depositors with LDX Points, increases Sats earned per day by fivefold, and includes an automated options strategy designed to potentially increase users’ sUSDe weekly earnings by 2.5 times while maintaining yield stability during sideways market conditions. 

Furthermore, according to Lyra, the strategy is beneficial for sUSDe holders optimistic about ETH and seeking upside potential without exposure to downside risks. It generates higher yields in bullish market conditions and either reduced or no yields in bearish markets.

Ethena Labs focuses on the development of USDe, an Ethereum-based stablecoin collateralized by derivatives. This method aims to maintain a balanced return profile denominated in US dollars, mitigating potential losses or gains from either position. sUSDe is the staked variant of USDe.

What Is Lyra?

Lyra is a comprehensive derivatives DEX offering options and perpetuals trading with features such as cross-asset collateral, cross-margin, portfolio margin, and the capability of self-custody. The platform operates with the LDX token, serving as both the utility token for the Lyra Protocol and Layer 2. LDX also facilitates governance of the Lyra DAO and promotes alignment of interests among diverse stakeholders.

Recently, Lyra has collaborated with Privy to enhance its onboarding experience, streamlining wallet access through email, social media, and passkey logins. The new integration merges Privy’s authentication suite with account abstraction and session keys, allowing users to link an email address, Google account, or passkey to their external or embedded wallets. This enables trading directly in the browser without the need to manually sign transactions.

Disclaimer

In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.

About The Author

Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.

More articles
Alisa Davidson
Alisa Davidson

Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.

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