Lyra Finance Offers Automated Trade Strategies for Liquid Restaking Token Holders


Tokenizing any yield-bearing scheme allows LRT holders to obtain an annualized percentage return between 10% and 50%.

Investors in Lyra Finance’s decentralized options platform may now earn more with their liquid restaking tokens (LRT). Automated versions of common techniques, such as basis trading and covered calls, will be available on the platform for LTR holders to use in order to generate additional revenue.

Swell Network and Ether.Fi, two liquid restaking protocols, have collaborated to produce the so-called tokenized derivatives yield product. Shared with CoinDesk in a press release, it will assist rswETH and eETH token holders in earning an annualized percentage return ranging from 10% to 50%. As a benchmark for conventional finance, that’s far higher than the yield on U.S. treasuries, which stands at 4.47% for a 10-year period.

Users may deposit their ether (ETH) or liquid staking tokens like stETH into EigenLayer via protocols like Ether.Fi and Swell Network, which are known as liquid restaking protocols. In return, they give out LRTs, or liquid restaking tokens, which consumers may later trade for ETH.

Users may automate the execution of a specified yield-bearing strategy on-chain by simply depositing rswETH and eETH into Lyra and minting a derivative token that bears yield. That is to say, it is possible to automate any yield-bearing approach and then bundle it into a universally usable ERC-20 token.

“The development of sustainable crypto economic markets and the bootstrapping of networks will be supported by tokenized derivatives yield,” according to Forster.

According to Forster, the total value of the restaking protocols might reach $30 billion in the next 12 months. Lyra is unique among these protocols since it offers a new layer of derivatives yield to both stakeholders and restakers.

Tokenizing basis trade, a well-liked market-neutral approach that aims to capitalize on differences between two marketplaces, is an initial option for consumers. Eventually, tokenized covered calls will be accessible, according to Lyra’s statement to CoinDesk.

In an email, Nick Forster, co-founder of Lyra Finance, said that the basis trade is a method that users may employ to generate additional return on tokens that are already providing restaking yield and ETH yield.

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