LEAP-5: Launch LINK Market
| Author | |
|---|---|
| Status | Implemented |
| Created | 2021-09-21 |
Simple Summary
Launch the Lyra LINK market on the Optimistic Ethereum mainnet, which would be the first ever LINK options market.
Abstract
This LEAP proposes launching the LINK market on the Optimistic Ethereum (OΞ) mainnet. A four week liquidity round will be initiated, four boards will be created which expire 7, 14, 21 and 28 days following launch (all at 8am UTC time). Each board will have seven strikes listed.
Motivation
Lyra's AMM mechanism generalizes to any asset with a liquid spot market. sLINK is now tradeable on Synthetix's Optimistic Ethereum (OΞ) deployment, and the addition of a LINK market would increase the range of assets available to traders.
Specification
Overview
The work required to implement v1 of the Lyra Protocol has been completed and is viewable here. This section describes the process of deploying the relevant smart contracts, adding liquidity and creating the listings. The process will only differ in that there is currently no liquid LINK options market in existence, so the initalizations of the board will be determined by the core team, with input from the commmunity.
Rationale
This LEAP proposes launching the LINK market alongside the ETH market. The ETH markets have been live for almost a month, and the Lyra mechanism is performing as intended. The AMM was designed to generalize to any ERC-20 assets with a liquid spot market, and LINK fits these requirements. Moreover, given Chainlink's early presence on OΞ and their thriving community, it stands to reason that interest and demand for LINK options will be high. The LINK market (like the ETH market) will be launched without delta hedging, as Synthetix shorting is not live on OΞ. The progress on shorting can be tracked in SIP-135.
Technical Specification
1. Liquidity
Liquidity sourcing and possible rewards will be discussed by the Council prior to market launch.
2. Options Quoted
Options will be listed with 7, 14, 21 and 28 day from launch expiries.
Test Cases
Test cases are included with the implementation and are available here
Configurable Values
Configurable values will be determined by the core team, in consultation with the community, prior to market launch.
Copyright
Copyright and related rights waived via CC0.