DeFi
Lyra Finance offers leveraged exposure to ETH via Ethena
The platform launched its sUSDeBULL vault, offering depositors upward leverage on the increase in the price of ETH.
Lyra Finance, a DeFi platform offering derivatives and tokenized yields, is offer an additional 2.5x yield on sUSDe when ETH surges via a partnership with Ethena.
Users who deposit into Lyra’s new sUSDeBULL vault will earn LDX points from Lyra and Ethena Sats, while maintaining exposure to Lyra’s automated options strategy, which aims to increase yields as ETH rises and preserve yield when ETH price falls.
Lyra Automated Options strategy buys bullish call spreads with the yield generated by sUSDe in the previous week, giving users leveraged exposure to the upside of ETH via yield. If ETH trends down, users risk earning no yield on their capital during this period.
sUSDeBULL Projection Table – Lyra Finance
Lyra’s total value locked (TVL) has increased more than 10x since the start of the year and is now back to levels it hasn’t seen since Q1 2022, according to DeFiLlama.
Product deposits began to take off in late May, when Lyra introduced Liquid Retaking Token (LRT) deposits.
It is worth noting that the sUSDeBULL vault is launching before the Ethereum ETF. However, the price of Ethereum has been on a steady decline since June and has dropped 15.9% over the month, contradicting expectations that the upcoming ETFs should bode well for ETH holders.