DeFi process options are broken

链捕手 view 36050 2022-1-15 09:53
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2022 is the beginning of gold. The total cryptocurrency market capitalization fell -11% in the first week of the year. The top 100 DeFi tokens saw a sharp decline of -12%. However, there is a section of DeFi that will be very successful in 2022. It is an option. Instead of falling, options futures gained 66% in market value at the start of the year, increasing their market share.

Good year.

Some reason selection options have been able to outperform the cryptocurrency industry so far this year with their startup. Process options are also cheaper than other DeFi protocols. Ribbon Financial, for example, closed the quarter with revenue of over $100 million and a value-to-sale ratio of less than 2x. Uniswap, Yearn and other brands traded at around 4 times their sales volume. Much of the price difference has to be made with the choice of chain, which is slower than other DeFi systems.

However, slow leadership paved the way for strong growth. In the fourth quarter, the growth of the "TVL" options protocol had overtaken DeFi.

DeFi 结构化期权迎来爆发

TVL for select contracts in December increased by 86%, while overall DeFi TVL was down -1.5%. During the quarter, Options promised to expand TVL by 412%, while DeFi TVL grew by 278%.

Although there has been significant growth in the selection process, it is still far from the level of adoption compared to the traditional budget. To say that options are a big market in the traditional financial system is unbelievable. Options play an important role in day-to-day finance used by manufacturers, hedge funds and retailers. Expanding its retail options trading industry, Robinhood generates 45% of its quarterly revenue from options trading on its platform.

DeFi 结构化期权迎来爆发

This option has proven popular and useful for Robinhood, its user base similar to modern crypto users. Robinhood has approximately 19 million monthly active users generating $656 million in annual revenue for the platform.

How the processes and ecosystems pave the way to run the business with similar products and great revenue with the retailer?

First, let's identify the differences between the contract in the selected area.

Overview of ecosystem selection

DeFi 结构化期权迎来爆发

The channel selection process generally consists of two types of rules. Market selection and product design. Marketing is a contract that creates options in real time and facilitates the buying and selling of options. Liquidity to get all options is always obtained by user filling options with deposit or bad pool. Processes like Opyn, PsyOptions, and Zeta Market all work in the usual order form, while most other protocol options like Dopex, Lyra, Premia, and Hegic use the pool correctly.

The crafting process sits at the top of trading options and provides users with a vault where they can deposit their money. Each museum completes the selection process based on optional recovery strategies, cost resolution, and user risk management. Like Yearn executes farming strategies for financial markets and trading under the vault.

Telephone or cash sales are the most important part of the product in the industry. Call options generate income on tokens by selling call options at a strike rate above the current value of the token (non-call call options). The buyer elects to pay a fee for the option contract, and the price returned to the vault increases the return cost. A crate is placed the same way but in the opposite direction. Stablecoins are packed in a shopping bag and used to provide options for tokens with a lower strike than their current value.

So far, packaging design has driven adoption of most channel options. Raw call and put options at different prices are not attractive to cryptocurrency users. The design eliminates all hassles of underwriting, optional pricing and cost strikes, replacing them with easy deposit and getting a secure box.

Vendors aren't the only ones using the option design library. Many processes have used process selection procedures to create vaults for financial management and token holders. Leverage an optional vault instead of the traditional collateral vault for better recovery costs and higher protocol token sales because token release is not required.

Structured product vaults drive the adoption of on-chain options, so let's expand this process to understand the ecosystem of smart contracts our users use and the specific processes they use.

Ecosystem TVL

DeFi 结构化期权迎来爆发

Of course, Ethereum has the largest TVL of any product. It houses the Ribbon Financial, the first widely used protocol device. Ribbon created popular products in the crypto space and dominated this space until another policy was announced in Q4.

Led by fast growing Dopex, Arbitrum is the second largest manufacturing ecosystem. Total Arbitrum TVL ($1.7 billion) has been downgraded from L1 ($5 - $143 billion), thus having the second highest TVL option to show that the process is more harmonious throughout the ecosystem . Dopex is by far the biggest choice of platform and is responsible for most of its development. The increase in symbolic value has also contributed to the positive performance of the options market this year (market capitalization increased by 85% from January 1 to 9).

Solana announced two new rules in December, both raising significant sums within a week of their publication. Friktion and Katana offer similar products in a wide range of libraries and support devices. Both rulers provide 14 different bolts versus 7 from Ribbon, 4 from Dopex and 3 from StakeDAO.

DeFi 结构化期权迎来爆发

Ribbon continues to be the manager of choice with over half of TVL. Its core business fell after the start of the quarter with almost all TVL in the sector. This not only impacts the good growth of ribbon itself, but also the significant increase in other industry regulators during the quarter. Let us dig into each and compare the nuances of each.


Ribbon Financial is a traditional crafting process that works in the Opyn store. Every week, every seven ribbon vaults uses the deposit to get Opyn options, which are sold or auctioned, and the fees are returned to the vault based on revenue. During the fourth quarter, Ribbon generated more than $11 million in revenue for the museum.

In September, the process released the V2 version of Vault and recently changed the total version to V2. Like V1, V2 vaults make a short option every week. The changes in V2 are the full options for decentralized chests, changing value, and enabling the meta chest (the shared value for the code creation process on top of ribbon chests). Change the franchise cost model to management fee and operating cost (2% and 20%) to optimize process goals with users and allow owners eight adjustments at the top of the ribbon.

Ribbon became a new team in this space and pioneered yield products with yvUSDC from Yearn. Instead of selling an option against the usual USDC, the user uses USDC collateral conversion to generate yvUSDC, which enables Vault's most common return profile by capturing ecosystem recovery. The loan application includes the premium recovery option. In addition to new upgrades to its existing products, the ribbon is also continuing expansion into other public channels that will be announced at Avalanche in December, including the target nature of using Solana.


Dopex probably has the most important goal and a new way of doing all the work here. Although not currently the most widely used, its price has reached the highest free float market capitalization of any option. Protocol work is also very specific. Instead of using the repository to access options for other fonts, Dopex takes advantage of the same font and applies all options.

The main product is selected as a choice of SSV selection (a living death State select Bolt). Once a month, you can choose the money to deposit the bank and give the money to make exercise. If you give a lot of money in the Underwriters Fee after the amount of deposit, other users can buy these options within a period of time. Use Ribbon This is the model called advantage of "surgical" Vault "vault in DPX, RDPX, eth , and gohm.

Dopex prices differ from other regulations because they are charged at the consumer's choice rather than at the gold deposit. 20 basis points are charged for purchasing options and an additional 10 basis points are charged for optional spending at the end of the session.

Dopex's creative approach necessitates how it utilizes its dual token structure (DPX and rDPX) and rewards issuance. SSOV Safes combines two-pool loan models and secured options with DPX coverage and fees. On the card, Dopex plans to use the popular veDPX models in which prizes are sent to museums based on the weight of DPX tokens. This model will become even more important as Law continues to work with Dopex to design the SSOV vault (OHM is the first) and as a process to get DPX to support the water in the basin. In theory, optional gift safes may be more popular than the process of moving away from returning items from the gift outlet (making them more toxic and softer) for the asset-selling model. .

rDPX is a Dopex discount token providing an option for subscribers to lose capital at a rate of 30% of their losses over time, offsetting investment risk. However, the pricing plan of rDPX is much higher than that of cash back tokens. Dopex plans to use rDPX as a trading add-on for the platform and provide stable use of dpxUSD throughout the process. rDPX is under renovation and design details will be released later this month.

In addition to design protocols, Dopex has some interesting ideas for ways to use DeFi options. Among the special application options for curved gauge discharge. Instead of using options to predict token value over time, these options are used to understand the CRV energy emissions weighting curve. The so-called war curve that everyone hijacks from the idea of ​​running the CRV is important to directly reward voters who choose AMM lakes (which encourage water in lakes together). By providing a CRV value pool option, users or processors can earn CRV shows directly instead of competing for veCRV votes.


StakedDAO started collecting revenue similar to Yearn, but recently added a production library to its production. While there has always been a positive integration of safes continuing to be an integral part of the TVL process, the selection process for optional safes saw strong growth in the fourth quarter as one of the most most important in the industry.

StakeDAO currently has 3 Vaults, all of which are essentially the same as the Ribbon Vaults. In both agreements, Opyn is used as an optional company to secure options. The difference between StakeDAO is that it usually combines earnings from the Earnings Vault and Options Vault. Assets placed in the StakeDAO Option Vault have just been placed in the platform's product portfolio guide to generate additional income.

StakeDAO is also unique in that it uses Frax as a stablecoin to get short chests. In addition to StakeDAO's premium options and passive Frax vault revenue, users can pair their LP tokens into Frax for additional revenue.

StakeDAO's pricing structure also varies from Ribbon. When Ribbon moved to standard management and operational pricing, StakeDAO now offers a 50 bps drop rate to the church at no charge to the platform for assets or benefits. .


Launched in mid-December, Friktion is Solana's largest retailer with over $90 million on TVL. TVL was up nearly 50% at the start of the year from $66 million at the start of the year. This is an estimated growth profile of $30 million in new TVL every 15 days. Follow the design principles of the ribbon-shaped product. Options are available on multiple platforms and sold for a week or two.

The driver of value growth is the additional growth potential of a new business. Friktion offers 14 real-time options and supports a wide range of assets beyond EVM-based protocols that typically focus on ETH and BTC commodities. Friktion owns assets such as Luna, FTT, SOL derivatives and various Solana DeFi ecosystem tokens. The expansion of available options is driven by the ability to sell options to potential clients in the channel bidding market (but not limited to promoting options in the market (companies such as psyOptions ).

tib nut

TaNuts is perhaps the most rigorous of the built-in links in any choice process. ThetaNuts has been exported to Ethereum, BSC, Avalanche, Polygon, Fantom, Boba, Aurora, etc. It has the advantage of initially deploying for channels that have not been commercialized but currently have no other protocol options. The conglomerate raised over $44 million in TVL by the end of the year, primarily through Ethereum distribution.

Now, TaNuts also does not charge a fee for the vault. Adopting a similar off-chain selection auction, it appears to be able to offer a range of options as it is not limited to on-chain trading in the trading process.


Launched in mid-December after winning the Solana Ignition hackathon in early 2021, Katana became Solana's second choice content, generating over $37 million on TVL by the end of the year. It offers similar products to Friktion, each supporting a total of 14 different strategies for products like Luna tokens, FTT, Solana Derivatives, and Solana DeFi.

Katana is also seeking financial management partnerships with various DAOs. Injective and Katana recently announced a partnership with Financial Management, where Katana will provide INJs with an optional vault and fund them to generate cash back from optional fees. In addition to Injections, Katana has announced several partnerships with a Solana-based law firm to improve its ability to invest.


As for TVL, Premia is small, but it uses the expansion method for the DeFi-native option. Similar to Dopex, the options to make money from either liquid water process. Users place their money in the pool and earn money due to the money received from these funds. Therefore, the cost will depend on the choice needs of the process, not on the choice of channels or outgoing buyers.

It currently provides users with 3 outlets and is distributed to Ethereum, Arbitrum, and BSC. However, Ethereum and Arbitrum refer to the majority of TVLs, almost half of which occur in their ecosystems. Although the number of TVLs is relatively low, the platform has benefited from the return on investment. Additionally, options like to trade 10% to 20% less than process options such as Dopex due to lack of focus on the process.


As DeFi grows and profits are generated by demand for low-cost loans, the optional process will go even further to provide larger payouts with lower risk. This can further dilute and weigh on project token sales, especially as the law begins to generate revenue for stakeholders beyond token release.

Broadband options have a lower cost than DeFi, and most high-end options have a retail price of less than $100 million. Adoption of legal options is starting to shift as the options process shows Q4 TVL growth relative to the broader DeFi ecosystem.

One thing to look for is the level of choice of call options. Robinhood's comprehensive product options were driven by retailers buying and selling options on the platform, and many DeFi adopters simply place them in the strategic choice pool. This means that the DeFi protocol should find off-chain buyers (usually commercial manufacturers) for resale value. Policies like Dopex, Lyra, Premia, etc. are all based on buying and selling options of users directly on the process, so the change in user behavior is essential to measure this quantity of platform.


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