May 4, 2021, 7:41AM EDT
• 9 min read

An Overview of On-Chain Options in DeFi

Quick take

  • Options are foundational infrastructure for any financial system, including DeFi.
  • Trading volumes for options on cryptocurrencies like BTC and ETH have grown significantly in the last year, but the majority of this volume is on centralized exchanges. 
  • Automated market-making systems have been extremely successful bootstrapping liquidity in swaps and lending, but have not taken off for options so far.

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