DeFiMEX is building a new DEFI options contract exchange with an innovative DEFI straddle arbitrage mechanism.
The system currently supports trading of options contracts in the mainstream DEFI currencies. DeFiMEX will step into the new wind of the blockchain era, focusing on the new DEFI financial track with a top technical team, UNI Foundation participation and global operations.
DeFiMEX will step into the new wind of blockchain era, focusing on the layout of DEFI new financial track, top technical team, UNI Foundation participation, global operation.
The DeFi options contract is on fire for two main reasons：
While DeFi is on fire, there are two problems with its market: the threshold as well as learning costs are high for the average user, making it difficult to participate; and for high-end players, especially those holding large amounts of DeFi tokens, there is no particularly good way to hedge risk.
To address these two pain points, DeFiMEX options contracts allow DeFi asset holders to hedge their risk; allowing most retail investors who find it difficult to participate to use a smaller amount of capital to earn a larger return through options contracts, the advantage of DeFi options contracts, which are more volatile, even if the mainstream coin goes sideways, there is still a lot of room for profit.
As the DeFi market explodes, so will the interest in DeFi options, which is expected to become a dark horse in the crypto market all together. This is a major boon for trading platforms that specialise in digital assets like DeFiMEX, and a boon for users, with one more option to make money – after all, options are still very appealing with their small exposure, limited risk and unlimited returns.
DeFiMEX was relaunched since February with an innovative design: a two-way options liquidity pool. Since its launch less than two months ago, it has attracted over $10 million, giving traders considerable depth in options liquidity.
What is a DEFI options contract?
An option is a financial instrument that provides the user with exposure to the price of the underlying asset while limiting its downside exposure. DeFiMEX offers buyers the opportunity to buy long (calls) or short (puts) on UNI or ETH.
Put options represent the right (not the obligation) to sell an asset at a predetermined price within a specific time period. This gives you a ‘short’ exposure, as if the price of the underlying asset had fallen, and you retain the right to sell the asset at a higher price (called the strike price) and make a profit.
A call option represents the holder’s right (not obligation) to purchase an asset at a predetermined price within a specified period of time. This gives you a ‘long’ exposure, as if the price of the underlying asset had risen, and you retain the right to buy the asset at a lower price and make a profit.
If the price of UNI / USDT falls, buy a put option to protect you from IL. Or purchase a call option to protect against a price increase resulting in a decrease in non-stable currency assets. You can even buy both in case both scenarios arise (known as straddle arbitrage).
Two-way liquidity pools
Perhaps the most innovative and experimental aspect of DeFiMEX is its two-way liquidity pool for both UNI and USDT, with both the UNI and USDT pools acting as liquidity, allowing buyers to purchase DeFiMEX calls/puts of any size (as long as liquidity is available) at any strike price for three durations (60s, 120s, 300s).
This design overcomes the liquidity fragmentation problems encountered when a fixed-order thin option protocol allocates liquidity between multiple strike prices, put and call option contracts and expiry dates.
How to Buy Put Options and Call Options on DeFiMEX
Design your custom options to best suit your cryptocurrency trading strategy
Select the type of option you want to enter. This can be a put option or a call option
Select the strike price you want the option to have. The default strike price is set to the current Chainlink Predictor price of the underlying asset.
Select the duration you want the option to have: 60s, 120s, 300s