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Decentralized Option Products #1

Why We Need to Pay Attention to DeFi Options Protocol

Options

Price of Ribbon Finance Token and its Revenue (Source: Token Terminal)

Options Overview

Before talking about the options protocols in the DeFi market, let us have a brief look at what options is.

  • Put option: a right to sell an underlying asset at an exercise price on or before expiry (seller exercises the option when the price of underlying asset is lower than the exercise price and profits from the difference)
Credit: Stefano Gianti (https://medium.com/@stefanogianti)

Ribbon Finance

Ribbon Finance: https://app.ribbon.finance/
Ribbon Finance: Covered call on Ethereum
P&L graph of Ethereum Covered Call https://docs.ribbon.finance/products/series-y-theta-vaults

Squeeth

Squeeth: https://squeeth.opyn.co

1. oSQTH

Source: Opyn Medium (https://medium.com/opyn/squeeth-primer-a-guide-to-understanding-opyns-implementation-of-squeeth-a0f5e8b95684)
Power Perpetual: A call option indexed to a power of the price of some underlying instrument that has no maturity.

2. Crab Strategy

Squeeth is planning three Vaults of Bull strategy, Bear Strategy and Crab Strategy, and now only the Crab Strategy is active.

Crap Strategy P&L: https://opyn.gitbook.io/squeeth/resources/squeeth-strategies-faq

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DeSpread is a consulting firm specializing in Web3 & blockchain since 2019. Our mission is to establish strong ecosystem foundation for anyone through eye-to-eye communication and education.

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