Lyra Finance Introduces Automated Yield Strategies via Tokenized Derivatives Yield Feature

Decentralized options platform Lyra Finance has introduced a new feature allowing holders of liquid restaking tokens (LRT) to generate additional yields through automated versions of popular strategies such as basis trade and covered calls. This innovative product, called tokenized derivatives yield, is being offered in collaboration with liquid restaking protocols Swell Network and Ether.Fi. Users depositing rswETH and eETH tokens in Lyra can mint a yield-bearing derivative token that automatically executes predefined yield-bearing strategies on-chain. This service enables any yield-bearing strategy to be automated and converted into a composable ERC-20 token that can be utilized elsewhere. According to a press release shared with CoinDesk, this new offering will provide holders of rswETH and eETH tokens with annualized percentage yields ranging from 10% to 50%. This is significantly higher than the 10-year yield of 4.47% on U.S. Treasuries, which serves as a benchmark for the risk-free rate in conventional finance. Nick Forster, Lyra Finance’s co-founder, believes that the “tokenized derivatives yield” concept will underpin the growth of sustainable crypto economic systems, particularly over the next twelve months when the value locked in restaking protocols is projected to double to $30 billion. Initially, Lyra plans to offer its users the opportunity to tokenize basis trades, a market-neutral approach aimed at exploiting price divergences between related markets. Tokenized covered calls, a more complex strategy involving the sale of Ethereum (ETH) call options using liquid restaking tokens as collateral, will be made available to users at a later date. The latter strategy carries greater risks, but it offers users the chance to earn yield on top of their existing ETH holdings while receiving USDC yield instead.