Lyra, an options trading protocol built on Ethereum-scale network Optimism, received $3.3 million in a seed round led by Framework Ventures and ParaFi Capital.
The DeFi Alliance, Orthogonal, Robert Leshner’s Robot Ventures and Apollo Capital also participated in the round.
The decentralized finance (DeFi) project, which launched its testnet less than a month ago, is expected to launch on the mainnet in September.
As DeFi gains traction, financial products in the chain that mirror traditional financial products are structured products until derivatives, are growing in popularity, but the options market is struggling to gain traction.
Lyra is integrated with Synthetix, a trading platform that also uses Optimism. By collaborating with Synthetix, Lyra can hedge the risk for liquidity providers. Risk management allows Lyra to keep costs low for traders.
“Options are an essential missing piece in the DeFi stack,” ParaFi Capital’s Santiago Roel Santos said in a statement. “Lyra’s new on-chain pricing mechanism, Synthetix integration and implementation on Optimism will introduce traders and liquidity providers to a scalable and capital-efficient options protocol.”
Lyra’s team plans to use the money from the starting lap to hire additional technicians.