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Introduction to DeFi Options Trading: Comprehensive Comparison of Five On-chain Protocols
Introduction to DeFi Options Trading: Overview of Mainstream Protocols
In the current risk-filled environment of the cryptocurrency market, Options trading is becoming increasingly favored by investors. This article will introduce readers to the basics of Options trading, as well as several on-chain Options protocols worth paying attention to.
Options Trading Basics
Options are a type of financial derivative that give the buyer the right to buy or sell the underlying asset at an agreed price on a specific date. Options are mainly divided into two types: call options and put options.
Options trading can be used for high-leverage speculation or hedging downside risk. However, option pricing is relatively complex, and it is recommended that investors fully understand pricing theories such as the Black-Scholes model before trading.
Five Mainstream On-Chain Options Protocols
1. Lyra
Lyra is a user-friendly Options protocol that offers a variety of strike prices and expiration date choices. Currently, the total locked value on Optimism and Arbitrum exceeds $29 million.
2. Hegic
Hegic's feature is the support for custom expiration dates and the provision of one-click complex Options strategies. It is suitable for users who wish to flexibly formulate trading strategies.
3. Whiteheart
Whiteheart is known for its simplicity and ease of use, allowing users to complete transactions by simply selecting the underlying asset and the hedging days. It is suitable for novice users who wish to quickly lock in the current price.
4. Premia
Premia supports options trading for various small-cap tokens and provides an options pricing dashboard for users to reference.
5. Siren
Siren offers a trading interface similar to traditional brokers, supporting a variety of underlying assets and strike price options.
The five protocols mentioned above each have their own characteristics, and investors can choose the appropriate platform for options trading based on their needs. However, regardless of which platform you choose, please fully understand the risks of options trading and manage your positions appropriately.