On Chain Options in Crypto, which one is the best?
Today we are comparing:
Lyra v Hegic v Premia
Read this thread to learn about the leaders in the option space 🧵🧵🧵
Today we are comparing:
Lyra v Hegic v Premia
Read this thread to learn about the leaders in the option space 🧵🧵🧵
2/ For those of you reading, I assume you are familiar with Options
If not, watch some videos, here's a video on YouTube to watch and learn.
youtube.com
If not, watch some videos, here's a video on YouTube to watch and learn.
youtube.com
3/ In DeFi options only have a TVL of 160m, only a small % of the total DeFi TVL.
Trading value of options in DeFi is also small compared with CeFi options with Derribit having more than 90% of the market at the moment.
In TradFi, Options make up 35x of underlying stock volume.
Trading value of options in DeFi is also small compared with CeFi options with Derribit having more than 90% of the market at the moment.
In TradFi, Options make up 35x of underlying stock volume.
4/ So options are currently small in DeFi, which is why we want to see which of the few available today are any good.
@lyrafinance @HegicOptions @PremiaFinance
We are going to compare:
UI/UX
Liquidity
Spreads / Fees
Variety in products
Incentives
Stats
My personal preference
@lyrafinance @HegicOptions @PremiaFinance
We are going to compare:
UI/UX
Liquidity
Spreads / Fees
Variety in products
Incentives
Stats
My personal preference
5/ Here is the interface for all 3, Lyra, Hegic and Premia.
All are clean, easy to read and understand. I think it's personal preference as to which is your favourite. The experience of buying is also very simple on all 3 with plenty of options on screen.
All are clean, easy to read and understand. I think it's personal preference as to which is your favourite. The experience of buying is also very simple on all 3 with plenty of options on screen.
6/ TVL, Lyra wins
Lyra is headed for that rank 1 spot
Lyra TVL - $30m
Hegic TVL - $18m
Premia TVL - $8.6m
All 3 are quite small though. We ideally need to see $100m+ in liquidity as soon as possible.
Lyra is headed for that rank 1 spot
Lyra TVL - $30m
Hegic TVL - $18m
Premia TVL - $8.6m
All 3 are quite small though. We ideally need to see $100m+ in liquidity as soon as possible.
7/ Spreads
Lets take a look at ATM Call option for Ethereum with a strike of $1700 and expiring 3rd March.
Lyra - $81
Hegic - $109
Premia - $92
Similar story, $LYRA offers the best currently.
Interestingly for the same option - Deribit is also at $81
Lets take a look at ATM Call option for Ethereum with a strike of $1700 and expiring 3rd March.
Lyra - $81
Hegic - $109
Premia - $92
Similar story, $LYRA offers the best currently.
Interestingly for the same option - Deribit is also at $81
8/ Product Variety
Lyra offers BTC and ETH Call/Puts
Hegic the same but has a lovely one click feature for multiple strategies
Premia the largest variety of assets.
Premia's product variety is great but it's limited by liquidity as well as fluctuating pool prices.
Lyra offers BTC and ETH Call/Puts
Hegic the same but has a lovely one click feature for multiple strategies
Premia the largest variety of assets.
Premia's product variety is great but it's limited by liquidity as well as fluctuating pool prices.
9/ Incentives
Providing liquidity for Options needs to be incentivised in order to grow quickly. So who is giving the best?
Lyra offers rewards for sUSD and USDC deposits on Arbitrum and Optimism.
For Hegic, writing options is with $HEGIC.
Premia varies on the vault.
Providing liquidity for Options needs to be incentivised in order to grow quickly. So who is giving the best?
Lyra offers rewards for sUSD and USDC deposits on Arbitrum and Optimism.
For Hegic, writing options is with $HEGIC.
Premia varies on the vault.
10/ Stats
Open interest
Lyra - $2.5m
Hegic - $9.1m
Premia - $1.1m
Surprisingly, Hegic has the most OI, is this due to the easy of complex strategies such as straddles and long butterflies in one click?
Open interest
Lyra - $2.5m
Hegic - $9.1m
Premia - $1.1m
Surprisingly, Hegic has the most OI, is this due to the easy of complex strategies such as straddles and long butterflies in one click?
11/ My Preference
As always, not financial advice, my personal preference is Lyra. It is simply the cheapest to use, with the best option prices, the most liquidity and lots coming.
Options are exciting and just really getting started in DeFi. 2023 will see a whole lot more.
As always, not financial advice, my personal preference is Lyra. It is simply the cheapest to use, with the best option prices, the most liquidity and lots coming.
Options are exciting and just really getting started in DeFi. 2023 will see a whole lot more.
12/ If you want to learn more about Lyra, here's an in-depth video made in collaboration with @563defi covering everything you need to know!
youtu.be
@lyrashortput
youtu.be
@lyrashortput
Sharing with some of the best creators around!
@563defi @DeFi_Taha @hmalviya9 @psychguy_eth @DeFiMinty
@DAdvisoor @blocmatesdotcom @Chinchillah_ @defi_mochi @CryptoDragonite @pt1mfv_
@LouisCooper_ @DefiIgnas @Dynamo_Patrick @Subli_Defi @0xTindorr @swaggyAlexyo @Slappjakke
@563defi @DeFi_Taha @hmalviya9 @psychguy_eth @DeFiMinty
@DAdvisoor @blocmatesdotcom @Chinchillah_ @defi_mochi @CryptoDragonite @pt1mfv_
@LouisCooper_ @DefiIgnas @Dynamo_Patrick @Subli_Defi @0xTindorr @swaggyAlexyo @Slappjakke
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