LEAP-9: Launch BTC Market


Simple Summary

Launch the Lyra BTC options market as part of the Ignition phase, to be incentivized with LYRA rewards equivalent to the ETH market rewards.


This LEAP proposes launching the BTC market as part of the Lyra Ignition phase. This market should be incentivized equally to the ETH market within the Ignition program, reflecting the dominance of both ETH and BTC across other exchanges and financial products.


Lyra's AMM mechanism generalizes to any asset with a liquid spot market. sBTC is tradeable on Synthetix's Optimistic Ethereum (OΞ) deployment. BTC is the most traded asset in crypto markets (DeFi and CeFi) so having a liquid BTC market is essential to drive more volume and new users to the Lyra protocol.



Two Lyra options markets (ETH and LINK), have already been successfully deployed, which means that there is minimal infrastructure/engineering work required to launch a BTC market. Since BTC has a liquid options market on Deribit, a liquid options CEX, initial parameters can be selected by the core team that are in line with Deribit.


Lyra's ETH options markets have been live for 2 months, with LINK trading for the last month. The Lyra mechanism has performed as intended, and has currently had early success in recent rounds. BTC is a bedrock asset to quote for any crypto-native protocol, due to the demand for BTC trading and the stature it holds within the crypto community. Given volumes observed on other CEXs/DEXs, it is likely that demand for BTC markets will be similar to ETH demand (which has been relatively high).

Technical Specification

Liquidity rewards should be incentivized within the Ignition framework, equal to the ETH market rewards. The BTC rounds schedule should mirror existing Ignition plans for ETH and LINK markets (same expiries, same trading start date).

Test Cases

Test cases for an implementation are mandatory for LEAPs but can be included with the implementation.

Configurable Values

Configurable values will be determined by the core team, in consultation with the Council/Community, prior to market launch.

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