Decentralized options are one of the several fast-growing components of Decentralized finance. (DeFi) In case you missed out on Perpetual Protocol (PERP) decentralized exchanges (DEX), then no need to worry.
Decentralized options are about to get hot. This sector will probably pick up 100 times over the next few years.
An option is a derivative contract that gives a buyer the right to buy or sell an underlying asset at a certain price and deadline. Basically, options allow traders to speculate on the future price of an asset.
The purchaser can either bet on the price going up (call option) or bet on it going down (put option).
In traditional finance, traders have advanced through several levels of trading. However, in Crypto, since there are barely any experienced traders, the market for options is smaller.
When crypto traders master the art of advanced trading, then options are the next step for them. And when experienced traders ditch traditional finance for crypto, they will definitely need places to trade options.
Options trading is beneficial in that it's flexible to execute customizable strategies. Also, it can be used as a hedging device for risk management. Moreover, it cost efficient.
If demand for options increases, the top projects in the sector will eventually boom. Option exchanges can be compared to casinos that don’t have players yet. So basically, we are betting on an industry that hasn’t been birthed yet.
How Does The Crypto Landscape Look Like Now?
The biggest crypto options platform is Deribit. Traders can also use options such as Binance, CEXs, Bybit. However, there are some pros of trending on a DEX vs CEX including; no KYC, no counter-party risk, and more security, and sovereignty.
Decentralized perp trading platforms such as GMX, DYDX, and GNS have gained enormous popularity. It is highly likely that the decentralized perp industry will continue to grow.
Top Decentralized Options Projects To Watch
1. DPX
Dopex allows users to trade through their vaults. It operates on Arbitrum.
2. PREMIER
Premia allows traders to put options for different tokens. It remains to be the only platform that gives a “robin hood like” user interface and allows users to select expiry.
Premia’s goal is to provide crypto traders a place to trade options contracts on DeFi tokens. It uses SushiSwap to sell all fees into ETH and then into the PREMiER token off the bonding curve and rewards users with PREMIER.
3. LYRA
Lyra is one of the leaders in the decentralized options space. It uses synths to enable AMM-priced options trading. Their network just keeps growing.
4. HEGIC
Hegic is a decentralized protocol that allows users to purchase call and put options on Ethereum and Bitcoin.
The protocol’s native token is HEGIC. They recently launched on Arbitrum. Traders can earn settlement fees from option buyers on Hegic.
5. JONES
Jones DAO offers vaults for simple, easy access to instructional-grade options and strategies.
Still, more projects are coming up and there’s a chance that the existing platforms will embrace options trading in the near future.
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