Original Author: Chinchilla
secondary title
Opyn
Opyn is currently the largest options protocol, with a TVL of $54 million, deployed on Ethereum, and has not yet issued governance tokens. It provides two unique functions.
The first is Squeeth. When a user goes long, he will buy an ERC-20 token "oSQTH", which represents the square of ETH (Eth^ 2 ). Therefore, when rising, the income of holding sSQTH is higher, and the loss is also more when falling.
When the user goes short, he will get the option fee, which is equivalent to selling Squeeth with ETH as collateral.
secondary title
Premia Finance
Premia has been deployed on multiple chains including Arbitrum, and it has a total TVL of $7 million. Premia's user experience is fascinating, everything is easy to find and visualized, and its options can be exercised at any time before or after expiration.
Similar to Dopex, users can provide liquidity in Premia's liquidity pool and get token rewards. For example, if you are bearish on ETH, you can put ETH into an ETH/DAI call option pool. And vice versa, if you are bullish on ETH, you can put ETH into the ETH/DAI put option pool.
Dopex
Dopex is a very interesting protocol on Arbitrum, and they recently announced that it will be deployed on Polygon as well. So far, there are two types of Vaults available on Dopex: Single-Stake Option Vaults (SSOV) and Straddles.
In SSOV, users can buy call or put options, and can also provide liquidity for option vaults, and collect option fees from those who buy options, thereby earning income.
secondary title
Lyra Finance
Link:https://www.lyra.finance/
Lyra, built on Optimism, has a TVL of $13M. Its "simple" section is intuitive and easy to use, with options to buy or sell calls or puts based on strike price and expiration date.
There is also an option to use the Advanced features if desired.
Buffer Finance
Built on Arbitrum, Buffer is a fork of GMX that offers binary options trading. Its operation is very simple and intuitive, you only need to select the execution price, expiration time and "up" or "down", and you can start betting.
secondary title
Hegic Options
Hegic, built on Arbitrum, has a TVL of $6 million, up 150% in the past month. Interestingly, in each direction, Hegic intuitively provides multiple strategies. For example, if you are bullish, you can choose the four strategies of Call, Strap, Bull Call Spread, and Bull Put Spread in the figure below. Similarly, for the bearish, there are also four strategies to choose from.
In addition, there are high volatility and low volatility options available on Hegic, offering two strategies each. For example, to choose high volatility, there are Straddle and Strangle strategies.
Polynomial Protocol
Link:https://www.polynomial.fi/
Polynomial is built on top of Optimism's Lyra Finance, using Synthetix's synthetic assets, the main product being Earn Vaults. These Vaults are option-based automated strategies that provide passive income. If you choose the right fund pool, APY can be high (~30%), because when the strategy is profitable, the rate of return obtained by the depositor through the option fee can be compounded, and you can also earn a 10% performance fee.
With only 3 strategies so far, the TVL is about $800,000. Note that APY is not guaranteed. Whether it is a short/medium/long term call or put option, it is necessary to choose the correct fund pool (call option/put option).
UX is also a place that attracts attention, and the large-scale application of encryption technology also requires good UX. On Polynomial, information on strategy, performance, suitability, on-chain transactions, and more can be easily found.
Additionally, the project recently launched a “Portal” through which funds from Polygon, Arbitrum, and the Ethereum mainnet can be deposited. Although Polynomial runs on Optimism, it also allows users to add liquidity from other chains.
Original link
IOS
Android