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Also, check your 3D settings in Nvidia control panel, add Hard Bullet there.
Also, go to Windows Graphics Setting and set Hard Bullet to maximum performance.
About HL:A optimisation — game was made by multibillion company and with special design that do not give you real physics simulations but instead uses various clever tricks to make such feeling. Do not expect to see such quality in any other VR game in the nearest years.
If you want to know more about awesome Valve designs that brought you Alyx quality, you can check this deconstruction videos to learn more:
https://www.youtube.com/watch?v=UPrfC7r2c78
https://www.youtube.com/watch?v=rqLEL3kE4hc
UPD: Huge Performance Update released:
https://store.steampowered.com/news/app/1294760/view/4374768325791234354
Old message:
We are trying some new culling solutions for arenas and have plans for puppet's optimisation in the future.
For now you can try to turn off realtime lights from gun shots and lower violence levels (like turning off dismemberment) to gain a small boost. Sorry for the inconvenience.
Making this as a new topic answer because it's been a while since prevoius one from 2021.
Mine is lagging massively, I've turned it down to 72 FPS and it can't hold it, it's awful when enemies are spawning.
I've turned all violence and effects off as well, I've tried running in steam runtime, oculus runtime, through virtual desktop, through steam link and all suffer from the samebproblem.
My Nvidia settings are set to highest performance as well.
It really does need to be optimised better, it would be such a good game.