Exploring the World of DeFi Options: In-Depth Analysis of 5 Major on-chain Protocols

As the cryptocurrency market changes rapidly, Options trading has become an important tool for investors to express strong market views. This article will provide a detailed introduction to the basic concepts of Options trading, analyze the associated risks, and focus on recommending 5 on-chain Options protocols worth paying attention to.

Options Trading Introduction

Options are a type of derivative contract that gives the buyer the right, but not the obligation, to buy or sell the underlying asset at an agreed price on a specified date. Options are divided into two types: Call Options and Put Options.

• Call Options: the right to buy the underlying asset at the strike price
• Put Options: the right to sell the underlying asset at the strike price

Options can be likened to an insurance contract: investors pay a premium in advance to obtain the security of exercising their rights under specific conditions. This mechanism gives options a unique risk-return characteristic of limited loss and unlimited profit potential, attracting a wide range of market participants.

Five Recommended On-Chain Options Protocols

( 1. Lyra - Professional-grade cryptocurrency Options trading platform

• Supported Chains: Arbitrum, Optimism, Ethereum
• Trading varieties: ETH, BTC

Lyra Finance is a leading options protocol with a total locked value of )TVL( exceeding 29 million USD. It offers traders a user-friendly interface, diversified strike prices and expiration date options, as well as lower bid-ask spreads, providing a strong liquidity advantage in ETH and BTC options trading.

Suitable for users: seasoned traders who wish to replicate the traditional brokerage trading experience.

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( 2. Hegic - A flexible and diverse options strategy platform

• Supported Chains: Arbitrum, Ethereum
• Trading varieties: ETH, BTC

Hegic's features include support for customizable expiration dates and a variety of one-click complex Options strategies. Users can choose from various combinations of bullish, bearish, or volatility-related strategies based on their personal risk preferences and market expectations. The platform also provides intuitive profit charts to help users clearly understand the potential returns under different market scenarios.

Suitable for users: advanced traders seeking flexible expiration dates and one-click complex options strategies.

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) 3. Whiteheart - A simple and easy-to-use price locking tool

• Supported Chain: Ethereum
• Trading varieties: ETH, BTC

Whiteheart provides users with an extremely simple interface, requiring only the selection of the underlying asset ### ETH or BTC ( and the number of hedging days to complete the transaction. This "hedging contract" mechanism allows users to easily lock in the current price and avoid downside risks during specific time periods.

Suitable for users: novice traders seeking a simple way to lock in the current price of ETH or BTC and avoid short-term risks.

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( 4. Premia - Small Market Cap Asset Options Trading Platform

• Supported chains: Ethereum, Arbitrum, Optimism, Fantom
• Trading varieties: ETH, BTC, YFI, LINK, ALCX, alETH, OP, FTM, etc.

The uniqueness of Premia lies in providing options trading for various small-cap assets. The platform supports customizable expiration dates and diversified strike prices, and also offers an options pricing dashboard based on an improved Black-Scholes model to help traders identify pricing discrepancies.

Suitable for users: traders who need flexible expiration dates and wish to gain in-depth knowledge of various asset options pricing.

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) 5. Siren - A diversified options platform in the Polygon ecosystem

• Supported Chain: Polygon
• Trading varieties: ETH, MATIC, SUSHI, YFI, UNI, DPI, etc.

Siren is an options protocol on the Polygon network, providing an options trading interface similar to traditional finance. Compared to Lyra, Siren supports a greater variety of underlying assets and offers a wider range of strike price options.

Suitable for users: experienced traders who wish to replicate the traditional brokerage trading experience within the Polygon ecosystem, while seeking a more diverse range of underlying assets and Depth out-of-the-money Options.

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