Exploring 9 Decentralized Options Protocols 🌐
Last week, we released our article analysis on the crypto options market and covered CEX vs DEX options in our previous post (Link at end of the post).
This week, we will be taking a look at 9 decentralized options protocols! We believe that TVL is a great metric to determine the strongest players in the decentralized options space, so here are the key contenders shaping the decentralized options landscape:
🔹
@opyn_
TVL: $13.17M
Chains: Ethereum, Avalanche, Polygon
Opyn focuses on developing open finance by leveraging DeFi methodologies and perpetual options and introducing the pioneering perpetual options like Opyn Squeeth.
🔹
@HegicOptions
TVL: $10.94M
Chains: Arbitrum, Ethereum
Hegic simplifies peer-to-pool options with one-click process for various strategies and the cost of an option based solely on premiums, eliminating additional trading or taker fees.
🔹
@aevoxyz /
@ribbonfinance
TVL: $15.7M (Combined)
Arbitrum, Ethereum, Optimism
Built by the same team, they are one of the biggest players in the options niche. Aevo is a derivatives L2, offering options & perps trading. As for Ribbon, their first product was the first Decentralized Options Vault (DOV) protocol, offering tokenized structured products and strategies.
🔹
@lyrafinance
TVL: $9.45M
Chains: Optimism, Arbitrum, Ethereum
Innovation: Lyra operates as an automated market maker (AMM) for options, and enhancing capital efficiency and composability with the upcoming V2.
🔹
@PremiaFinance
TVL: $5M
Chains: Arbitrum, Ethereum, Optimism, Fantom, BSC
Premia V3 boasts a Hybrid Orderbook, where each pool equates to a specific strike and liquidity tick, and includes vaults for tokenizing exotic or structured strategies, incentivized by PREMIA and governed by vxPREMIA stakeholders.
🔹
@dopex_io
TVL: $4.28M
Chains: Arbitrum, BSC, Avalanche, Ethereum
Dopex introduces Single Staking Options Vaults (SSOVs) and a dual token system (DPX and rDPX) for governance and liquidity enhancement.
🔹
@ryskfinance
TVL: $3.01M
Chains: Arbitrum
Rysk Finance blends AMM and Request for Quotation (RFQ) systems that offers uncorrelated and delta-hedged yields for its liquidity providers, providing auto-exercising options with efficiency and user-friendliness.
🔹
@Opium_Network
TVL: $2.64M
Chains: Ethereum, Polygon, BSC, Arbitrum
Opium's decentralized escrow system, offering adaptability to various use cases such as sports betting, where participants can place wagers, with the escrow determining payouts based on the event's outcome.
🔹
@DualFinance
TVL: $2.5M, including staked $18.17M
Chains: Solana
Dual Finance empowers DAOs with liquid option-based incentives, tools and services. Partner projects can use their Staking Options to sustainably incentivize their communities.
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TVL data was taken from
@DefiLlama, on 24/11/2023.
For a comprehensive look at these players and their contributions to the decentralized options space, check out our full article here ⬇
blog.impossible.finance/impo…
If you missed it, last week we took a deep dive into the ever-evolving crypto market ⬇
twitter.com/impossiblefi/sta…
Dive into the dynamic world of crypto options with a glimpse into the current state of the market.
We did the research for you — So, grab a cup of coffee and read up 👇
In the crypto options market CEXs, like
@DeribitExchange, dominate in terms of trading volume, offering deep liquidity and competitive pricing, but require custody of user funds and rely heavily on market makers.
DEXs, led by platforms like
@aevoxyz,
@ryskfinance,
@HegicOptions,
@PremiaFinance and
@lyrafinance. It focuses on self-custody and transparency, utilizing automated market makers (AMMs) and Request for Quote (RFQ) systems to aggregate liquidity but are lagging in terms of volumes.
This disparity underscores the overwhelming prevalence of centralized platforms in the crypto options trading landscape, yet the significant untapped potential for expansion and growth of the decentralized options space.
When we delve into maturity data and strike prices, CEXs offer greater liquidity and flexibility. Users can purchase contracts with expirations extending well into the next year, signifying the market's depth.
In contrast, the decentralized
#cryptooptions space exhibits a distinct pattern. Here, the majority of users engage in options with much shorter durations, typically within a one-week timeframe.
When assessing the distribution of options traded by their maturity dates, a notable trend emerges, though:
There is a reduction in the percentage of options traded within a week of maturity.
Another significant distinction between centralized and decentralized crypto option exchanges is the distribution of trading volumes between BTC and ETH.
In the centralized crypto option exchange domain, there is a notable skew towards BTC options, with considerably higher trading volumes in comparison to ETH.
Conversely, within the decentralized crypto option exchange landscape, the situation is reversed, with ETH options experiencing higher trading volumes than BTC.
This divergence probably highlights the versatility and variety of options available to cryptocurrency traders across various platforms, together with preference of the options.
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This is just one part of our deep dive into the crypto options sector 😎
Our full article goes beyond just analyzing the option market statistics. We shine a spotlight on 9 Option projects, the impact of LPDFi in crypto options, and much more!
Read here:
blog.impossible.finance/impo…