Opyn

Derivatives

Opyn is a platform that provides an infrastructure where participants can create, buy, or sell on-chain options contracts in the form of oTokens.

Risk Rating
Average
Protocol Code Quality
Protocol Maturity
Protocol Design
Summary
What we like
Opyn allows anyone to buy, sell and create options on any ERC-20 asset.
What we like less
The protocol does not yet have a governance token that allows protocol users to vote on the platform's furture direction.
What it means for you
Offers you a great way to hedge your downside exposure, gain leverage without liquidation risk, and earn yield through selling options.
Information
Info
Key Metrics
  • TVL: $8M (Rank #153)
  • TVL Ranking by Derivatives: #0
  • Blockchain: Ethereum, Avalanche, Polygon
  • Chain TVL
    • Ethereum: $7.86M
    • Avalanche: $110.38K
    • Polygon: $1.39K
Risk Assessment
Average
Protocol Code Quality
Protocol Maturity
  • Core protocol launched in 2020; maturity over one year minimizes technical risk as smart contracts are well battle-tested
  • Top 10% by total value locked reduces risk
  • Multisig wallet controls protocol upgrades
  • Multisig consists of less than 4 signers, which makes the protocol more susceptible to centralization risks
  • No timelock exists or no information documented, which mean a malicious actor could approve upgrades without any delay
  • No governance token and/or contracts are fully immutable
Protocol Design
  • No death spiral concerns
  • Robust controls to mitigate oracle price manipulation
  • This protocol is susceptible to risks related to decentralized options, such as loss of principal if they were to expire in-the-money (ITM)
  • Opyn is a permissionless DeFi options platform that enables anyone to buy, sell and create options through the creation of oTokens
Things to know about Opyn

How Opyn works

Opyn is a generalized options protocol that allows DeFi users to create call and put options, as well as an easy-to-use options marketplace. Opyn V1 enabled the creation of any option market through through its Option factory contract. This contract allowed anyone to create an options market for any whitelisted asset with a specific strike price and expiry date. Each options market is defined by a oToken which is a tokenized ERC-20 asset of an options contract. These tokens can be minted by those who sell options by locking up collateral for a period of time. Opyn V2 released European, cash-settled options that auto-exercise upon expiry. The V2 enhancements focused on improving capital efficiency by introducing spreads that allow long oTokens to collateralize short oTokens. Opyn also integrated with the 0x decentralized exchange where oTokens are primarily traded. Lastly, a new V2 feature was the introduction of limit orders that allows traders to buy and sell options at a specific market price.

How Opyn makes money

At the moment, Opyn does not charge any protocol fees. Its services are provided free of charge for users. Users only have to pay a 0x protocol fee when they buy or sell options.

How you make money on Opyn

You can deposit whitelisted assets into Opyn to create call and put options to hedge or leverage your positions. You can also deposit assets to mint oTokens and sell to users to earn options premiums.