A compilation of 5 DeFi Option Protocols worth noting
Key Points:Options trading with DeFi always offers high returns and a certain level of risk.
This is one way to help investors survive in any market.
Let’s take a look on 5 DeFi option protocols worth your attention.
101 Basics of DeFi Options
Our Favorite Five On-Chain Options Protocols
Options trading may be the best option for you if you are interested in options trading. Options trading might be the best option for you.101 Basics about DeFi OptionsDoes this picture cause anxiety? You don’t know what an options chain is? This section will explain what an option chain is.
Puts: The ability to sell COIN at strike price.
Scenario: Your friend believes that the regulatory drama at Coinbase amounts to total FUD. He exclaims:
“COIN will go supernormal by Friday!” I need to ape now to increase my gains. However, I don’t know what to buy Know.
Your response (not financial advice!) ): “Really? If you insist…I recommend buying February at $60 strike Call Options expiring Friday the 17th.” Your friend then trades $1850 for the right but not the obligation to purchase 1,000 COIN shares at $60 each. If “disaster strikes”, (i.e. When “disaster strikes” (i.e. COIN trades above $60), investors start to make a profit.
Chains: Optimism and Arbitrum
Options: ETH, BTC
Lyra Finance, an options protocol, has $29M in TVL divided equally between its Optimism deployments and its Arbitrum deployments. Lyra Finance launched on Arbitrum in January and its TVL has more than doubled. It offers options traders more liquidity in ETH or BTC than other protocols. Lyra is recommended for: Seasoned traders looking to replicate the experience of traditional brokerages.Source: Lyra FinanceHegicWebsiteGun Twitter
Chain: Arbitrum, Ethereum
Options: ETH, BTC
Lyra’s predetermined expiration dates may make it difficult to implement complex multi-leg option strategies. Hegic allows users to choose from a variety bullish, bearish and high-volatility biases. Users can tailor their return results to suit their risk tolerance and market sentiment. The dApp overlays the yield results you generate onto an interactive chart, giving users a visual idea of what they will gain (or lose) at the expected value of any underlying asset.Recommend Hegic for: Degens looking for flexible expiration and one-click complex options strategies.Source: HegicWhiteheartWebsiteGun Twitter
Options: ETH, BTC
Are you having financial difficulties? Do you have financial problems?
The number of days that you want to hedge
Closing the deal means that you have locked in the current ETH/BTC price for the duration. Whiteheart’s “hedging contract” provides users with deep options liquidity, minus the protocol’s complex interface and complex options strategies (which may be daunting for those new to DeFi).Recommend Whiteheart for: Novice options traders looking for an easy-to-understand way to lock in to the current ETH or BTC price and eliminate downside risk over a fixed time period.Source: WhiteheartPremiaWebsiteGun Twitter
Chains: Ethereum. Arbitrum. Optimism. Fantom.
Options: ETH and BTC, YFI. LINK. ALCX. alETH. OP. FTM
Options are not limited to ETH and BTC. Premia offers options on smaller market capitalization assets, which you might be interested in speculating or hedging tail risks. The protocol is similar to Hegic and allows traders to set expiration dates for different strike prices. Unique to Premia, however, is the Options Pricing Dashboard which informs traders if options have been overpriced or underpriced. The model employed is similar to the Black-Scholes model based on traditional option pricing, but has been tuned to be optimized for cryptoassets.Premia is recommended for: Traders looking for flexible expiration dates and who want in-depth insight into option pricing on a variety of underlying assets.Source: PremiaSirenWebsiteGun Twitter
Options: ETH. MATIC. SUSHI. YFI. UNI. DPI.