Discover and read the best of Twitter Threads about #dovs

Most recents (4)

Crypto #options must overcome a massive demand gap for it to be a meaningful on-chain sector, and we are nowhere near there.

Here is a simple mental model to ponder over the demand for crypto options. ๐Ÿงต ๐Ÿ‘‡

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#Options have traditionally played second fiddle to the spot and futures market in crypto.

However, we are witnessing an increase in interest in options lately as protocols like @dopex_io @ribbonfinance @lyrafinance @opyn_ @PremiaFinance are gaining traction within CT.

/2
The #options market in #TradFi is massive, with daily volumes in the billions.

Options volume on single-name stocks soared during 2020 and 2021, exacerbated by the rise of retail investors.

/3 Image
Read 27 tweets
Is selling crypto options for yield an attractive strategy?

With the rapid growth of DeFi Option Vaults (DOVs), you may be wondering whether this is an attractive risk-reward strategy to generate income. A thread (1/9)
In TradFi, selling volatility or options is a common strategy used by funds to generate yield. When investors use a recurring options selling strategy (similar to what DOVs offer in crypto), they are trying to harvest what is known as the volatility risk premium (VRP).

(2/9)
VRP is the extra compensation options sellers earn for providing protection to option buyers. It is similar to insurance premiums. If car insurance companies only charge for the expected loss of you getting into an accident, they wouldnโ€™t make any money!

(3/9)
Read 10 tweets
Not many know this: DeFi Option Vaults (DOVs) have gained tremendous popularity over the past few quarters. The potential for DOVs to revolutionize DeFi in the coming years is HUGE.

Learn more ๐Ÿงต๐Ÿ‘‡

#WebTr3e ๐ŸŒณ #DeFi #DOVs #Options Image
What are DOVs? ๐Ÿ‘€

DOVs are automated vaults that use options as their underlying product to generate returns. At its peak, DOVs accounted for >$500M of the total #TVL in #DeFi options.

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2 reasons why DOVs are a force to be reckoned with:
1๏ธโƒฃ DOVs democratize complex options strategies to the masses
2๏ธโƒฃ DOVs bring high organic yield to DeFi

We believe that DOVs will shape the #DeFi space moving forward. ๐Ÿš€

/2
Read 22 tweets
1) @hedera "step function"...๐Ÿง will #tokenize the ๐ŸŒŽ & shock the #cryptocurrency community via "Project Guardian" & when it goes to market, it will vacuum up more #HBAR & #DOV than you can imagine ๐Ÿ‘€

Learn how in this ๐Ÿงต
Bullish on #HBAR & #DOV ๐Ÿš€๐ŸŒ• Image
2) The @UN has set a 2050 net zero carbon goal
un.org/sg/en/content/โ€ฆ

The @WhiteHouse has set a 50-52% reduction in GHG pollution by 2030. whitehouse.gov/briefing-room/โ€ฆ

Many states set their own 100% clean energy goals.
cesa.org/projects/100-cโ€ฆ ImageImage
3) These goals are ambitious. We can't just stop using fossil fuels yet. Currently renewable & clean energy sources are not abundant enough to meet our ๐ŸŒŽ energy demands. During this bridge from "dirty" to "clean" energy - carbon offsets, sequestration & other removal are vital. ImageImage
Read 25 tweets

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