Deribit, a renowned crypto derivatives exchange, has announced exclusive crypto options products. Hence, Deribit is launching $USDC-settled $TRX and $AVAX options. As Deribit mentioned in its official press release, the development is a key step in broadening the altcoin derivatives sphere. The launch provides traders with seamless access to relatively refined risk management as well as yield strategies through stablecoin settlement.
Deribit Expands Altcoin Options with $USDC-Settled $AVAX and $TRX Contracts
Deribit’s launch of $USDC-settled $TRX and $AVAX options further expands the wider altcoin derivatives ecosystem. This highlights the platform’s focus on the provision of stable and capital-efficient trading instruments.
With options settlement via $USDC instead of the underlying tokens, the platform lets traders avoid extra volatility risks linked to fluctuations in the asset prices. This structure is specifically attractive for professional traders and institutional players looking for predictable settlement and margin mechanisms.
Apart from that, Deribit has also presented clear specifications, assisting traders in the accurate management of exposure. Each option contract for $AVAX underscores 100 $AVAX, whereas each of the $TRX option contracts denotes 10,000 $TRX when it comes to notional value. The respective standardized sizes let traders easily design strategies like hedging, income generation, or speculation.
$USDC-Settled Options Offer Flexible Hedging and Yield Strategies
In the case of Deribit options, all the contracts are reportedly cash-settled. Thus, the losses and profits are settled in $USDC when a contract expires. Additionally, options back futures with the provision of uneven risk profiles. Moreover, call options enable traders to efficiently leverage price upsides with relatively decreased downside risk.
Along with that, put options offer protection against plunging prices. With this, options become considerably useful for those holding tokens for long term and hedge against provisional volatility without offloading assets.
According to Deribit, by launching the $TRX and $AVAX options with $USDC settlement, it is increasing the altcoin derivatives landscape with significant yield generation. In this respect, it allows traders to sell call options against $TRX or $AVAX holdings thereof. So, by obtaining option premiums beforehand, they can efficiently decrease cost basis.
Overall, amid the rising demand for crypto derivatives, $USDC-settled $TRX and $AVAX options make Deribit a key venue for refined trading and risk management strategies in the altcoin market.
ShahZaib Ahmed is a seasoned Crypto Journalist passionate about cryptocurrencies, blockchain technology, and decentralized finance (DeFi). With years of experience in the industry, ShahZaib Ahmed has written extensive news articles, price analysis articles and guide articles on Cryptocurrencies, Blockchain, DeFi, NFTs, Web3, and FinTech. Known for insightful analysis and a keen understanding of market trends, he brings complex concepts to life for beginners and seasoned investors.
- ShahZaib Ahmed
- ShahZaib Ahmed
- ShahZaib Ahmed
- ShahZaib Ahmed
