4DeFi

Posted on Mar 21, 2023Read on Mirror.xyz

Unleashing the Power of Deri Protocol's Everlasting Options for Trade

Deri Protocol's Everlasting Options: A Game Changer for Traders

The world of cryptocurrency trading is constantly evolving, and one of the latest innovations is the concept of everlasting options. Offered by Deri Protocol, these unique financial instruments allow traders to gain long-term exposure to options without the hassle and risk associated with rolling positions. In this article, we'll explore the benefits of Deri Protocol's everlasting options and introduce four effective trading strategies.

A New Take on Options Trading

Deri Protocol offers two primary products: perpetual futures and everlasting options. Both of these financial instruments belong to the same category of funding fee-based perpetual derivatives, which require users to pay a fee to maintain their position. Unlike traditional futures that come with expiration dates, these derivatives allow traders to maintain their position as long as they continue paying the funding fee.

The key difference between perpetual futures and everlasting options lies in the payoff function. Perpetual futures have a linear payoff, meaning that traders profit when the price of the underlying asset (e.g., Bitcoin) rises and lose money when it falls. In contrast, everlasting options feature a non-linear payoff function, allowing traders to profit when the asset's price increases without incurring losses when it decreases.

Four Everlasting Options Trading Strategies

  1. Everlasting Call Options - This strategy is ideal for traders who want to speculate on an asset's price increasing without downside risk. By purchasing an everlasting call option and paying the funding fee, traders can profit from price increases without incurring losses if the price drops.

  2. Covered Call Strategy - Traders who already hold an asset and wish to sell it at a specific price can use this strategy. By selling an everlasting call option and maintaining sufficient collateral, traders can collect premium funding from long positions while waiting for the asset's price to reach their desired selling point.

  3. Everlasting Put Options - This strategy is perfect for traders looking to hedge against downside risk. By purchasing an everlasting put option and paying the funding fee, traders can protect their portfolio from potential losses in case the asset's price drops below a certain level.

  4. Carry Trade - This strategy allows traders to profit from the belief that an asset's price will not drop below a specific level. By shorting an everlasting put option and maintaining sufficient collateral, traders can collect premium funding from long positions as long as the asset's price stays above the specified level.

Embrace the Future of Trading with Deri Protocol

Everlasting options, as a decentralized protocol, are revolutionizing the way traders approach options trading. By providing long-term exposure without the need for rolling positions, Deri Protocol is offering a groundbreaking solution in the world of decentralized finance (DeFi). To experience the benefits of Deri Protocol's everlasting options firsthand, visit deri.io today.