Get the best return for the least. Advanced challenge gameplay: challenge options strategy

The selected products have now become popular among DeFi users. In a way that offers particular advantages to investors, the risk is different from water mining or security policy, and there is an opportunity to earn a premium option without direct marketing. There are many Defi protocols that use different options and bundle them into a single format to deliver them directly to the user. This type of strategy is “heritage” in the traditional financial system. (The design arrangements of the financial system are generally based on fixed income securities and one or more financial derivatives based on specialized financial instruments or measures.)

Design products are commercial products that allow investors to easily leverage capital strategies by packaging financial products and delivering them to consumers. When it comes to DeFi, options based on business ideas are in high demand now. For those readers who do not know what an option is, an option is a financial tool based on the value of the property. An option contract gives the buyer the ability to buy (call) or sell (give) assets (the cryptocurrency market is Bitcoin, Ethereum, etc.) depending on the value of the term ( options decrease over time). Now, some selected contract options have become popular:

The decentralized options industry is the foundation upon which to design the products we will be presenting today. These products are at the forefront of innovation as they offer a unique way to gain value by selling calls or offering options rather than the usual token display, inventory mortgage or exchange rates.

Less risk compared to vanilla selection strategies Out of stock Vanilla options include call options (right buy) and offer options (right sell), but return funds may be negative depending on the price movement, so they are a risk-free asset. . no. For DeFi users, this is the easiest and most convenient way to achieve these benefits, without customers needing to understand the complexity of these options, as Greek has no or no there are no difficult defense strategies. Currently, the most attractive contracts offered by these designers are:

ribbon

Ribbon Financial is the most popular contract-based optional product, with total fixed assets (TVL) of over $ 200 million. ETHereum's operating system, has a library of 6 different formats, and includes various assets such as USDC, wBTC, ETH or AAVE. Hedged bullish and bearish sell strategies are used extensively in this deal. In the past, nearly every library contract idea has hit the asset lock cap, but recently they've widened the cap from tens of millions to billions. . Ribbon assets as a whole are an important part of the overall options industry.

Their latest best-in-class stETH-based library has a wealth of information on strategies that get the most out of DeFi. Ownership is another stable source of income, and yields can be improved. Other good libraries use resources like fixed currency coins (USDC), ETH, or wBTC.

The trading option used for this concept is the Opyn protocol. The fee paid to the user by the contract is 2% of the annual administration fee and 10% of the weekly operating fee. If your weekly plan is successful, you will be charged a weekly turnover based on income, and a weekly management fee based on the assets you keep in your library is good. If a weekly plan isn't effective, it's worthless.

Costs are currently included in the DAO warehouse, but renovations are underway and the team plans to convert these costs into a ribbon token to hold the funds. The plan is to send the tokens to a special library, but the end result will depend on the choice of members, just like curved gauges work. Fortunately, these awards can also be used to reduce the impact of Black Swan events such as the global economic downturn.

tampon de steak

StakeDAO is not limited to selected products, but offers a wide range of products. This contract also works on Ethereum. It should be noted that the contract recovery expectation is greater than that given by the tape. Because they combine these strategies with other passive strategies based on mining investment and exchange rates to increase further. Likewise, StakeDAO makes good use of the composability of Defi. Their option value sounds like a watch like Ribbon, and the selection process is updated weekly. In any good library, the following options are handy.

The trading options used by StakeDAO are also from the Opyn protocol. The rates for options based on these strategies are standard 0.5% subtraction rates. No payment option depends on the performance of your plan. Currently, these costs are distributed to contractors involved in the contract, like Sushiswap's Pledge program. Here are some tips given by choice.

It's beyond the scope of this sentence, but the interesting thing is how NFTs can be combined with other strategies. Currently, most strategies are very limited, which makes them useful for strategies such as arbitrage.

Ake 文章 ： Stake DAO presents DeFi the first public arbitrage strategy for Avalanche.

dopex

Dopex provides a library of options, called Single Stake Option Vault (SSOV), which is the most popular process today. There are a few differences between Ribbon and StakeDAO. The main reason is that it uses special models to offer its options and covers sales contracts using a combined contract such as UMA or Sushiswap. They now run on Arbitrum, avoiding expensive critical grid fuel costs. The contract is updated and revised monthly rather than weekly, and the completion rate is user-selected through our options.

The cost of completion is optional, so the size of your risk spread is ultimately up to you. A strike value that is closer to the actual value gives you a higher return but includes a higher risk, and if you choose a strike value that is much higher than the actual value, you will get a lower value but with a lower value. lower risk. There are now three good libraries:

The standard Dopex payment method includes a fixed payment rate of 0.125% (0.25% for rDPX) This rate is divided into liquid pool and contract, allowing the operator to enjoy the benefits of using the process.

Selective strategies were used

The main risk of the user is the loss of the registration due to a transaction or price expiry. Because of the choice of ridiculations, the purpose of the model is to control the benefits to prevent a variety of risks. According to our experience, the grade level of the travel cost is usually 25% higher than the current amount. This fee is selected by the license (external) rather than the automatic options for risk. For example, if an error occurred when you select the right hand, it will be bad or bad. This can take great loss for a creative library. Until now, this situation never happened, and the cause is very rare, but it still warns. The quality of adjusting the amount of walking is the flexibility of approval that can change the product that can change the product that can be changed now. The guidance to explore the future if the main points are based on the impact of different (eg, consisting of chain offices.

Going back to the standard, the functionality of this library policy differs from most DeFi library policies, and the assets of another Defi protocol can be revoked at any time. . However, in these contracts, when users are used to general concepts in good libraries, they cannot be reversed until the safe is in the closed position (weekly or monthly depending on the variation of each contract). Users can withdraw income during the closed period when the vault closes the old location and opens a new location. This delay is generally a few hours.

protection

These strategies generate income by combining the buying of assets with the writing of options. Auto put options call money back and hedge your business by locking in private assets of equal value. The plan gains value based on the income from the writing of options, and the cost is added to the plan and mixed to generate a percentage of annual return. This can be easily understood from the table below, where the exchange rate is planned on the x-axis and the P&L is planned on the y-axis.

The goal of this strategy is to sell the option on a weekly basis when the option expires and ultimately get the option to pay while maintaining good growth when the client is not making money. If the value is not expected to increase during the operation of a good library, the probability of concept completion increases. This may be appropriate for a long term business or a market situation where the price is a bit bullish. The income in each case can be easily simulated with Ribbon Profit Calculator.

The main risk in completing this protection scheme is that the idea will lose money if the call option is written in the library, the plan expires above the strike price of the first option call.

Risky events, business partnerships and potential investments

Since the weekly histories are the most common capital available to follow the traditional distribution, many strategies are effective. The value of investments in commodities and cryptocurrencies has so far been slightly skewed, but continues to improve on the positive side. Since these discounts are rare, investors can invest in these models and invest in assets that will fall in the middle of the distribution rather than in the middle of the line to collect the money. This is often called asymmetric capital. Bitcoin's weekly return can be seen in the figure below.

For example, if the weekly return is less than 0.25%, the trader can make more money.

In the context of the counterparty, or the seller or buyer of the options used by these strategies for the counterparty, the answer is usually the maker. Other vendors, such as Opyn, are involved in selling these options, and manufacturers have become competitors to buy the competitor's options. These manufacturers protect their risk by buying assets in stores or placing them in futures contracts. This is a system widely used in existing industry, which can control the delta average, enable lower value or pass rate at the same time without interruption, at the cost of moving the target. The Ribbon V2 uses an open auction from Gnosis, while StakeDAO uses Airswap to sell it to free retailers. Dopex issues its own direct options. As the cost of these competitors is higher than that of intermediary exchanges like Deribit, manufacturers can also compete with them.

Since restrictions may be provided by the manufacturer and other providers to the options industry, as well as the capabilities of each strategy, the capacity provided by Good Building Libraries is also limited. If these products continue to gain popularity, the choice of the market will also increase the capacity, which can increase the capacity of the quality library and establish a virtuous circle.