Every crypto trader and yield farmer wants to make substantial profits while mitigating some of the risks they tend to face in the extremely volatile market.
Fortunately, delta.theta has created a solution that aims to help both crypto traders and DeFi yield farmers to get the most out of their investment without high-risk exposure.
delta.theta is a decentralized peer-to-peer options trading platform that enables users to access centralized exchange (CEX) liquidity on-chain. This thus creates a decentralized network of real-time order book market makers to hedge decentralized exchange (DEX) options against CEX order books.
How Options are Used in Crypto?
Hedging positions
Investors can use hedging strategies to substantially reduce their exposure to risk in volatile markets like crypto.
When used properly, options help investors mitigate their risks without cutting down on their potential returns. The value of put options increases when the underlying asset falls below the exercise price of the option.
However, the value of call options decreases when the underlying asset falls below the exercise price of the option.
Market participation without position
Options can also allow traders to engage in the crypto market without taking up any position by speculating on the price movement of any crypto asset.
Here the trader has to choose between call or put options. Traders use the long call options when they are bullish about the price of the underlying asset, allowing them to make massive profits when the asset exceeds the strike price.
In contrast, traders implement long-put options when they are bearish about the price of the underlying asset, which serves as a protection for when the price falls below the strike price.
Meet DLTA Terminal v2.0
On December 21, delta.theta announced the release of its DTLA Terminal v2.0 to provide a more seamless experience for users.
Terminal v2.0 is a practical step towards the development of the project’s business model and preparation for the launch of the structured products module.
The platform aims to use the new terminal as a marketplace where users can buy any structured product. The project is not only expanding its products and services but also establishing new relationships and interactions with other protocols, including Aurora and NEAR.
Additionally, the new terminal has been audited by the Hacken audit company with no critical flaws detected.
Terminal 2.0 offers the following key features to Options traders:
– No limits on options, positions, and sides of the deal. Users can buy and sell any strike and premium on any Date and Option.
– Premium for Sellers is claimable right after the option is bought.
– Full DLTA token integration – 50% discount on platform fees while paying in DLTA, and ability to pay in DLTA for network fees.
– All PUT Option Sellers can get APY from Venus on their stablecoins via a cross-chain solution.
– Platform offers and expands the list of covered tokens to all Tier-1/Tier-2 tokens (Top-100 CMC).
– No Know-Your-Customer (KYC). One thing that many would consider a benefit is the lack of KYC. This is due to the fact that this is a decentralized exchange, and users won’t have to go through rigorous compliance checks.
Delta.theta’s Roadmap
With the second version of its terminal released, delta.theta aims to achieve great feats during the course of the next year.
The project’s main focus for 2022 will be on structured products and delta hedge automated modules. The project also plans to expand its networks, new listing for Tier1-Tier2 tokens, and new Ethereum Virtual Machine (EVM) networks.
There’s also an upcoming community program, as well as plans for a possible ambassador program. Moreover, there are rumors that there will be a community fund launched.