• About Us
  • Privacy Policy
  • Contact Us
Subscribe
Lascena
Advertisement
  • Home
  • Bitcoin
  • Cryptocurrency
    • Altcoin
    • Litecoin
    • Ethereum
  • Blockchain
  • Regulation
  • Market
  • Prices 2021LIVE
  • Videos
No Result
View All Result
  • Home
  • Bitcoin
  • Cryptocurrency
    • Altcoin
    • Litecoin
    • Ethereum
  • Blockchain
  • Regulation
  • Market
  • Prices 2021LIVE
  • Videos
No Result
View All Result
Lascena
No Result
View All Result

Opyn Upgrade Aims to Add Capital Efficiency and Liquidity to DeFi Options Market

December 29, 2020
in Market
Reading Time: 3min read
Opyn Upgrade Aims to Add Capital Efficiency and Liquidity to DeFi Options Market


Opyn, a marketplace for decentralized finance (DeFi) options, has rolled out a host of new features in its updated protocol that aim to make the crypto options markets more efficient and liquid. 

While Opyn entered DeFi with an insurance-like product for governance tokens such as compound, its focus has since pivoted to the options market in the digital asset space. According to Zubin Koticha, co-founder of Opyn, the pivot is driven both by user interest and by the sort of hurdles decentralized finance currently faces. 

“The biggest issue with DeFi is that [in] traditional finance, you don’t need super over-collateralization,” said Koticha. He added that the differing requirements on capital also eat into DeFi’s competitiveness with traditional finance. 

Put simply, options are financial contracts that give users the right to buy or sell an underlying instrument at a predetermined price on or before a specific date. Depending on what they make of market trends, options allow traders to bet on the future bullish or bearish nature of the market. 

While options have long existed in traditional finance they are relatively new to the crypto space and hence come with their own hurdles. 

Koticha pointed out that under Opyn’s earlier version users needed to put up 100% of the strike price, the agreed-upon price for the option, as collateral in order to mint and sell one. This differs from traditional options markets where the requirements can be significantly lower. 

According to Opyn, the update will add a host of new features to its options marketplace, including cash settlement for options without the need to exchange underlying assets, the ability for yield-earning assets to be used as collateral for options, and margin improvements for options. 

“We changed our system from physical settlement to cash settlement,” said Koticha. Noting that while traditional markets also cater to needs to settle options in physical commodities like grain, he said there is no such physical delivery need in the crypto space and hence little need to actually exchange the asset. Instead, only the difference in price needs to be delivered.  

Although the overall thrust of changes at Opyn are geared toward added efficiencies in how decentralized finance handles capital, the changes are only part of the upgrades in the pipeline. Koticha said Opyn is also plotting a protocol upgrade that will add the functionality to net short and long options together, thereby freeing up more capital. 

Earlier in August, Opyn discoveredf a vulnerability on its platform when attackers were able to exploit a bug and walk away with $370,000. According to report by Cointelegraph, the bug allowed attackers to double-spend Opyn’s oToken and thereby steal the collateral put up by users. 

In response, Opyn laid out in a blog post a set of measures it would adopt to prevent another such exploit and also compensated users affected by it. According to Koticha, the platform has continued to build on its security by performing additional audits and adding a functionality to pause the system. 

While a central kill-switch seems counterintuitive to the ever-bustling crypto markets, Koticha said that with plans to launch a governance token in the future Opyn wants to transfer the kill-switch controls to decentralized governance for the long run. 



Source link

Facebook0
Twitter0
Linkedin0
Print0
E-mail0
Yahoo Mail0
GMail0
SMS0
Messenger0
Tags: AddAimsCapitalDeFiEfficiencyLiquidityMarketOptionsOpynUpgrade
Next Post
Crypto.com to Delist, Suspend XRP in the US After SEC’s Ripple Suit

Crypto.com to Delist, Suspend XRP in the US After SEC’s Ripple Suit

Why XRP suddenly spiked 35% in 45 minutes after a massive correction

Why XRP suddenly spiked 35% in 45 minutes after a massive correction

Don't Miss

SHOULD YOU BUY TESLA STOCK IN 2020?? S&P 500 & $15,000 Price Prediction
Cryptocurrency Videos

SHOULD YOU BUY TESLA STOCK IN 2020?? S&P 500 & $15,000 Price Prediction

by Lascena Cryptocurrency News Education
February 25, 2021
0

Should you consider buying Tesla stock in 2020 as possible inclusion in the S&P 500 looms and Ark Invest is...

Read more
Ripple XRP “Watch In The Next 24 Hours!” | Warren Buffett & Jay Z

Ripple XRP “Watch In The Next 24 Hours!” | Warren Buffett & Jay Z

February 25, 2021
Don’t Be Fooled – Cryptocurrency Will Make A Lot Of People Very Rich as USD Inflation Getting WORSE

Don’t Be Fooled – Cryptocurrency Will Make A Lot Of People Very Rich as USD Inflation Getting WORSE

February 25, 2021
Liquid Cooled Bitcoin Mining Farm Tour | Immersion Cooling

Liquid Cooled Bitcoin Mining Farm Tour | Immersion Cooling

February 25, 2021
Here’s why DeFi will future-proof India’s crypto ecosystem

Here’s why DeFi will future-proof India’s crypto ecosystem

February 25, 2021

Lascena Cryptocurrency News Education

We have all the latest updated and legitimate information related to Blockchain, Cryptocurrency, latest market rates & trends, prices, new regulations along with every other thing that somehow related to crypto or digital currency market. Our main idea is to provide the kind of news that is original and at the same time, it can prove to be beneficial for our audience.

© 2020 lascena.ca

  • About Us
  • Privacy Policy
  • Contact Us
No Result
View All Result
  • Home
  • Bitcoin
  • Cryptocurrency
    • Altcoin
    • Litecoin
    • Ethereum
  • Blockchain
  • Regulation
  • Market
  • Prices 2021
  • Videos

© 2020 lascena.ca

  • bitcoinBitcoin(BTC)$51,523.003.94%
  • ethereumEthereum(ETH)$1,650.010.47%
  • Binance CoinBinance Coin(BNB)$258.610.13%
  • tetherTether(USDT)$1.011.40%
  • cardanoCardano(ADA)$1.073.80%
  • PolkadotPolkadot(DOT)$34.58-1.65%
  • rippleXRP(XRP)$0.474577-0.06%
  • litecoinLitecoin(LTC)$200.469.48%
  • chainlinkChainlink(LINK)$28.122.05%
  • bitcoin-cashBitcoin Cash(BCH)$547.021.97%