Lyra Finance Offers Leveraged Exposure to ETH Through Ethena

The platform has launched its sUSDeBULL vault, providing depositors with leveraged upside to ETH’s price increasing.

Lyra Finance, a DeFi platform offering tokenized derivatives and yield, is offering an extra 2.5x on sUSDe yields when ETH rises via a partnership with Ethena.

Users who deposit into Lyra’s new sUSDeBULL vault will be earning LDX Points from Lyra and Ethena Sats, while maintaining exposure to Lyra’s automated options strategy that is meant to increase yields as ETH goes up, and preserve yield when the ETH price chops.

Lyra’s automated options strategy buys bull call spreads with yield generated by sUSDe in the previous week, providing users a leveraged exposure to ETH upside via yield. If ETH trends downwards, users risk earning zero yield on their capital during that time.

sUSDeBULL Projection Table – Lyra Finance

Lyra’s total-value locked (TVL) has expanded by over 10 times since the beginning of the year, and is now back at levels it has not seen since Q1 2022, according to DeFiLlama.

The product’s deposits began to take off at the end of May, when Lyra introduced liquid restaking token (LRT) deposits.

Notably, the sUSDeBULL vault is launching ahead of the Ethereum ETF. However, Ethereum’s price has been on a steady decline since June, and is down 15.9% on the month, contradicting expectations that the upcoming ETFs would be expected to bode well for ETH holders.