Lyra has successfully raised $3.3M in an investment round that also witnessed the participation of Framework Ventures and ParaFi Capital as co-hosts for the fundraising exercise. Other partners who contributed significantly to making this round successful include Apollo Capital, DeFi Alliance, Robot Ventures, Divergence, Magnet Capital, and Orthogonal. Lyra protocol aims to offer tools to manage the risk associated with providing liquidity which means its services help traders choose the best combination of liquidity and pricing for investment and lending purposes.
Deployed on the much-touted Optimism layer 2 solution of Ethereum, Lyra is among the firsts protocols which have made its entry on the platform. The distinctive capability of Optimism is its ability to offer instant transactions, and Lyra, with its risk management capabilities, makes things simpler for the investors. In order to manage the risk, Synthetix platform for automated trading is used, and Lyra’s spreads change dynamically under Vega exposure to automatically increases the fees for trading moves which enhances the risk factor associated with trades.
By utilizing the scalability aspect of the layer 2 solution coupled with the Synthetix, Lyra offers traders unique capabilities of managing their risks with utmost ease and convenience. This directly translates into the empowerment of investors and users in decentralized finance while providing them with an opportunity to leverage existing and constantly emerging new avenues of growth in the DeFi space.
The fund raised by the organization will be deployed for expanding the expertise of its engineering team. The hiring process will be executed internally, and the organization expressed its gratitude to all partners and investors who participated in this fundraising ceremony. It will be interesting to witness how many more people will join the engineering team of Lyra and what unique capabilities they will bring to the table to enhance the practicality of the protocol further.