Top 5 Cryptocurrency Projects for Options Trading
A multitude of cryptocurrency endeavors are developing dedicated protocols aimed at facilitating the utilization and profit generation of cryptocurrency options.
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An option is a contract that allows a user to buy or sell an asset at a predetermined price. We have discussed this instrument in greater detail in our comprehensive article.
The main advantage of options is the opportunity to profit from both the rise and fall of a cryptocurrency. Options are also an excellent hedging tool for open positions. In this article, we will examine the most popular cryptocurrency projects based on options to determine how to utilize them and the opportunities they provide.
Ribbon Finance
Ribbon Finance offers clients multi-strike options for cryptocurrencies. These instruments enable the purchase of an asset at various prices, allowing users to capitalize on the asset's exchange rates. Ribbon's platform also features automated strategies based on options with different cryptocurrencies. This allows users to invest tokens such as BTC, ETH, UNI, USDC, and several other coins with a 15% annual return.
Ribbon Finance's native token, RBN, is used to provide internal liquidity. The project's current market capitalization is $146 million.
Available coins for investment on Ribbon Finance
Dopex
A project offering options on cryptocurrency pairs. With Dopex, users can purchase options not on a single token but on a currency pair, such as BTC/ETH. Typically, the internal token DPX is used for this purpose. This can reduce the risk of a cryptocurrency's exchange rate decline relative to the dollar since all exchanges occur exclusively in digital assets.
Dopex also offers leverage as a feature, which has the potential to increase profits from options.
The project has two native tokens, each serving different purposes. DPX is designed to accumulate profits from commissions if a user leaves their funds in a trading pool or storage. rDPX is created for developers who issue indices, synthetic assets, stocks, etc., using the token.
The market capitalization of DPX is $78 million, while rDPX is $44 million.
Dopex platform staking pools
HXRO
This protocol offers hybrid options for both buying and selling cryptocurrencies. The platform allows users to stake various tokens, with trading mainly in BTC.
The internal HXRO token is used to manage the options platform and provide liquidity for trading pairs. The asset's current market capitalization is $76 million.
Premia
This project offers options on cryptocurrencies with various contract execution options. With Premia, users can trade assets, arbitrage, provide liquidity for trading pairs, set up passive income strategies, and manage risks by hedging open trades with options.
The main assets traded on the platform are ETH, YFI, BTC, LINK, and ALCX. Premia supports trading operations on Optimism and Arbitrum networks, a nice bonus due to the Layer 2 trend.
The native Premia token has a market capitalization of $53 million.
Pools for passive income on Premia
Lyra
This project offers options on cryptocurrency indices. These are structured synthetic products composed of prices from various cryptocurrencies, similar to the S&P 500 index portfolio but for cryptocurrencies.
Lyra is divided into three different protocols:
● Polynomial. Automates options strategies to earn increased profits for providing liquidity;
● Brahma. Liquidity storage and staked funds;
● dHEDGE. Social asset management platform on Polygon, Ethereum, and Optimism networks.
BTC and ETH are the main assets with the highest liquidity on Lyra.
The internal Lyra token has a market capitalization of $45 million.
Liquidity statistics on Lyra
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