Lyra(now Derive)

Lyra is the first fully decentralized options protocol built on Ethereum.

It is an automated market maker for trading options on Ethereum. Successful market making depends on the ability to accurately price options and effectively measure and manage risk.

Two recent developments have made it possible to implement a traditional on-chain approach. The first is the emergence of layer two, which makes calculating aggregate risk practical. The second is the maturity of liquid spot markets, which enables protocol-to-protocol or composable risk hedging.