Decentralized finance allows virtually all mainstream financial applications to be recreated on-chain in a permissionless setting. Whether it be trading, risk coverage, savings accounts, lending and borrowing, crowdfunding, or investing, with DeFi, users can obtain significantly higher margins than through traditional means.
Despite the significant potential that on-chain options present, attracting new users away from a standard they’ve grown accustomed to remains a challenge.
To tackle this issue, FinNexus has created an intuitive and inclusive platform that allows users more control over their derivatives trading. Their project abstracts much of the complexity associated with defi, which should attract savvy traders, creating a snowball effect that leads to broader adoption of decentralized options.
How Options Work
Options are a financial contract that gives the owner the right to purchase or sell an asset at a predetermined price before the contract expires, although they do not have to exercise this right. They are a handy tool for investors, allowing users to speculate or hedge against market movement, and limit potential downside losses, but they also present their own unique risks.
Options break down into two categories: call options, which allow the trader the right to buy an asset at a specific price, and put options, which enable the trader to sell at a predetermined price. For buyers, the risk is limited to the premium they have to pay to conduct the transaction.
These factors make options contracts particularly popular with seasoned investors. They can be effective instruments to protect and appreciate Crypto Wealth.
What Makes FinNexus Different
FinNexus has got rid of many of the traditional bottlenecks seen in the options market, not least by introducing 24/7 trading. The current options market has limits placed by the exchanges they operate on; by settling options on a decentralized platform, those limitations are gone. FinNexus currently supports options for the following assets: BTC, ETH, LINK, SNX, and MKR and is accessible on both Ethereum and Wanchain, with ongoing plans to land on Huobi’s Heco chain and others.
With multiple access points and more assets planned to arrive on the platform down the line, FinNexus offers superior accessibility and opportunities than traditional options exchanges.
Using the FinNexus options platform, users can easily execute any options contract with the click of one button. Each transaction is verified by the protocol, allowing for a safe, transparent, and fair process.
More Than Just an Options Platform
FinNexus lets traders buy, sell, trade, and execute options, but that is just the tip of the iceberg. By utilizing liquidity mining with FinNexus’ native token, FNX, users can earn a return on their holdings.
The project has recently taken significant steps to upgrade its mining mechanism, introducing a new reward system with a 320x multiplier. They have also moved their decentralized liquidity to SushiSwap – it was previously also available on Uniswap – in order to concentrate available funds and improve the trading experience.
FinNexus is also expanding on its liquidity, introducing USDT into a stablecoin-hybrid liquidity pool so more users can access the network. Tether has a market cap of close to $35 billion and regularly generates the largest amount of daily trading volume among all cryptocurrencies, making it an excellent addition for LP mining with FNX.
In addition to that, they have just launched a new pool with algorithmic stablecoin Frax as collateral – a first for a defi options project – and are working toward the introduction of a decentralized leveraged token. This would mark one of the most innovative experiments in the defi space.
By creating a more robust ecosystem around options trading, one that rewards users with higher returns than established centralized platforms, FinNexus is gunning to capture a slice of the crypto options market.