Options Trading Guide: Exploring the 5 Major Options Protocols in the DeFi Space

In the current cryptocurrency market filled with uncertainty, options trading has become an important tool for many investors. This article will introduce readers to the basics of options trading and highlight 5 DeFi options protocols worth paying attention to.

Options Trading Basics

Options are a type of financial derivative that grants the holder the right, but not the obligation, to buy or sell an asset at a predetermined price on a specific date (. Options are mainly divided into two categories:

• Call Options ): Grant the holder the right to buy an asset at a predetermined price.
• Bearish Options ( Puts ): grants the holder the right to sell the asset at an agreed price.

The key elements of options trading include:

1. Underlying asset: the asset on which the Options are based, such as cryptocurrency.
2. Strike Price: The agreed purchase or selling price
3. Expiration Date: the date the Options become invalid
4. Options fee: the cost of purchasing options

Investors can use Options to hedge risks or speculate. Compared to direct trading, Options have the characteristics of leverage and limited risk.

5 Major Options Protocols in the DeFi Field

( 1. Lyra

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

Lyra is a user-friendly Options protocol that offers a variety of strike prices and expiration dates. It has ample liquidity and narrow bid-ask spreads, making it suitable for traders looking to replicate the experience of traditional brokers.

![A Summary of 5 DeFi Options Protocols Worth Noting])https://img-cdn.gateio.im/webp-social/moments-cf08e16679ca1eb52ff33ad106a8c2cc.webp###

( 2. Hegic

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

Hegic's features allow users to customize expiration dates and provide a range of one-click complex strategies. Its intuitive profit charts help users understand gains and losses under different scenarios. It is suitable for advanced traders seeking flexibility.

![A summary of 5 DeFi Options protocols worth noting])https://img-cdn.gateio.im/webp-social/moments-4e37adb8bcd42d98b6fc98ec02ab4f8b.webp###

( 3. Whiteheart

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

Whiteheart is known for its simplicity and ease of use; users only need to select the asset and the number of hedging days to lock in the current price. This "hedging contract" provides beginners with a straightforward risk management tool.

![A summary of 5 DeFi Options protocols worth paying attention to])https://img-cdn.gateio.im/webp-social/moments-fd85e09c8d75a896dd99ac3888260afb.webp###

( 4. Premia

• Supported Chains: Ethereum, Arbitrum, Optimism, Fantom
• Trading targets: ETH, BTC, YFI, LINK and various other tokens

What makes Premia unique is its support for options trading on various small-cap assets and the provision of options pricing analysis tools. It is suitable for traders looking to hedge or speculate on small-cap tokens.

![A Summary of 5 DeFi Options Protocols Worth Paying Attention To])https://img-cdn.gateio.im/webp-social/moments-4ad79f4283dfe89f562b90552afd8fc6.webp###

( 5. Siren

• Supported Chain: Polygon
• Trading targets: ETH, MATIC, SUSHI, YFI, etc.

Siren provides an interface similar to traditional Options chains, supporting multiple tokens and a rich selection of strike prices. It is suitable for users looking to trade Options on the Polygon network.

![A summary of 5 noteworthy DeFi Options protocols])https://img-cdn.gateio.im/webp-social/moments-60a27e97c8f9a1039bf403f092ca52c1.webp###

Summary

The Options protocol in the DeFi field provides users with a wealth of choices. Whether for risk management or speculative trading, selecting the right protocol is crucial for achieving trading goals. When engaging in Options trading, it is essential to fully understand the associated risks and make prudent decisions based on your own circumstances.