Before the upgrade, Lyra’s market maker vaults (MMV) paid swapping fees for every collateralization and hedging trade. For example, when a trader buys a call option contract on ether (ETH), Lyra’s MMVs would purchase ether from a spot exchange, incurring a fee. Once the trader’s position has closed, Lyra’s MMVs would sell back the ETH used for collateral, incurring yet another fee.
