DeFi Options Platform Opyn' s ' Crab Strategy' Generates 14% Return in Comatose Ether Market HEAD TOPICS

DeFi Options Platform Opyn' s ' Crab Strategy' Generates 14% Return in Comatose Ether Market

10/21/2022 12:39:00 PM

Opyn' s Crab strategy allows investors with little knowledge of options to generate alpha in a sideways market with a single click However it' s not without risks

Source

CoinDesk

.opyn_'s Crab strategy allows investors with little knowledge of options to generate alpha in a sideways market with a single click. However, it's not without risks. Reports godbole17. Opyn's Crab strategy allows investors with little knowledge of options to generate alpha in a sideways market with a single click. However, it's not without risks. The strategy is yet another example of the DeFi industry helping investors bypass complexities involved with traditional option strategies like"short straddle" often set up by sophisticated market participants during a market lull."When Crab v2 went live, the strategy had 888 ETH. Currently, the strategy has 5,378 ETH, a 505% increase in 3 months," Wade Prospere, head of marketing and community at Opyn, told CoinDesk. or squared ether – an index tracking ether's price change to the power of two and allowing buyers to earn more when the market rallies and lose less during price drops in return for hefty funding rates – costs for keeping the so-called power perpetual position open. Read more:
CoinDesk » Learn to Clean a Soft Shell Crab with the Queen of Louisiana Seafood Alaska Cancels Snow Crab Season After 90% Of Population Disappears What made billions of snow crabs disappear from the Bering Sea? 2024 GMC Sierra EV Denali: 400 miles of range for $108,695

Inside the only lithium producer in the U S which provides the critical mineral used in batteries by Tesla EV makers

Silver Peak has gained newfound attention in recent years as the energy and transportation sectors race to wean themselves off climate-warming fossil fuels. Read more >> Learn to Clean a Soft Shell Crab with the Queen of Louisiana SeafoodAll it takes is a set of kitchen shears. Alaska Cancels Snow Crab Season After 90% Of Population DisappearsAlaska has canceled the Bering Sea snow crab season for the first time ever due to an estimated 1 billion crabs disappearing over the last two years, the cause of which researchers are still investigating but could be linked to disease or climate change. What do you think? I had no problem catching crabs in Alaska Aerial dancer Not sure how you can call them snow crabs when they don't even live in the snow, instead loving in water. What made billions of snow crabs disappear from the Bering Sea?The Bering Sea's snow crab population has been in decline over the last five years, but this season the population has collapsed. 💔😞 andonitgoes 2024 GMC Sierra EV Denali: 400 miles of range for $108,695GM's next electric truck promises long distances between charging stops and crab-walking, but skips the WTF mode. DeFi Options Platform Opyn' s ' Crab Strategy' Generates 14% Return in Comatose Ether Market.opyn_'s Crab strategy allows investors with little knowledge of options to generate alpha in a sideways market with a single click. However, it's not without risks. Reports godbole17. on Twitter A decentralized finance (DeFi) product that launched earlier this year to help investors profit from a sideways trending market is generating desired results.How to Clean a Soft Shell CrabFrying the crispiest crustacean starts with a few simple steps that set you up for shellfish success.Alerts Alaska has canceled the Bering Sea snow crab season for the first time ever due to an estimated 1 billion crabs disappearing over the last two years, the cause of which researchers are still investigating but could be linked to disease or climate change.Snow crabs in the Bering Sea once numbered in the billions. The"Crab" strategy, designed by leading DeFi options platform Opyn, is built to make money during bouts of low ether (ETH) price volatility. It has earned 14% returns in U. Amanda Cusey, the Executive Chef at Lake Charles's The Villa Harlequin, always runs them as specials when she can get them.S. dollar terms and 42% in ether terms since its v2 went live in late July." They also require much less work to prep than hard-shell crabs: The soft-shell crabs you find in the States are typically the same blue crabs people often eat, but which have recently molted their old shell, before the new one has hardened. Ether has dropped 20% since the end of July, however, the cryptocurrency has primarily traded between $1,100 to $1,300 in the past four weeks.5 million, respectively — a loss of nearly eight billion crabs in just three years. The strategy is yet another example of the DeFi industry helping investors bypass complexities involved with traditional option strategies like"short straddle" often set up by sophisticated market participants during a market lull. What you need- Culinary shears - Cutting board - Soft-shell crab Before You BeginBuy your soft shell crabs live, as close to when you plan to cook them as possible. In case of a short straddle, a trader sells bullish and bearish options contracts called call and put on a centralized exchange. If the market stays rangebound, the short straddle makes money. If you aren't prepping and cooking immediately, she recommends packing them on ice until you do. Setting up such multi-leg strategies is easier said than done, as traders must select appropriate levels to buy/sell options and the expiration date and actively manage the position as several factors influence options prices. In Opyn's crab strategy, users only need to deposit ETH as collateral to start profiting from a comatose market.Place the crab on the board and hold it down with one hand, keeping the face pointing at your other hand."  "It came after a lot of sleepless nights and a lot of tears. And investors seem to be piling money into the automated product. "When Crab v2 went live, the strategy had 888 ETH. This kills the crab instantly, and gets rid of the beak. Currently, the strategy has 5,378 ETH, a 505% increase in 3 months," Wade Prospere, head of marketing and community at Opyn, told CoinDesk. Crab's inner working Squeeth or squared ether – an index tracking ether's price change to the power of two and allowing buyers to earn more when the market rallies and lose less during price drops in return for hefty funding rates – costs for keeping the so-called power perpetual position open. STEP 2: Remove the Lungs From Under the Back Shell. After users deposit ETH as collateral, the crab vault combines long ETH with a short (bearish) Squeeth position, creating a market-neutral position. Marine biologists refer to this chilly layer of water as the"cold pool, according to the National Oceanic and Atmospheric Administration (opens in new tab) (NOAA). That allows crab depositors to collect the funding rate – the cost of holding long positions – paid by the Squeeth buyers without having to worry about the risk of a rally in ETH and Squeeth. The lungs are the spiky-shaped and off-white pieces with a visibly stringy texture. Due to the attractive payoff, the funding rate paid by buyers is higher than that paid in a standard perpetual futures market and a 2x leveraged long position. Essentially, the vault is short Squeeth with a hedge. The lungs won't make you sick or anything, Causey advises, but they just are not pleasant to eat, in flavor or feel. "The crab strategy allows users to earn funding (yield) from being short Squeeth regardless of whether ETH will move up or down. In other words, Crab v2 is a delta-neutral [market neutral] strategy," Prospere said. STEP 3: Get Your Crab Ready to Cook. 2 report published by NOAA (opens in new tab). The strategy rebalances every Monday, Wednesday and Friday at 16:30 coordinated universal time to maintain the market-neutral position. "If ETH price decreases, the strategy sells Squeeth tokens for ETH (meaning it buys more ETH to remain market neutral)," Prospere said. But she does advise lifting the apron up when preparing the crab, allowing the batter to get all around and underneath it. The crab, therefore, stacks ether during the bear market. Depositors receive a payoff if ether does not move X% up or down between rebalances. While frying is common, soft-shell crab can also be deep-fried or sauteed without battering or breading the crab. The percentage is determined by the funding rate received from the Squeeth buyers and keeps changing daily.  Sometimes the crabs survive the shock of being suddenly transported to the surface and then thrown back into the water — but often they do not. The chart shows the crab strategy makes money when ether stays within the stipulated percentage threshold. This pared down process of essential steps for how to clean a soft shell crab takes your crustaceans from alive-and-kicking to shatteringly crisp as efficiently as possible. (Wade Prospere, Opyn) At press time, the crab strategy promised to pay out if ether did not move more than 4.22% between rebalancing periods. Read nowRelated Easy Apple TartletsImpress your guests this season with these quick, flaky pastries. While the one-click strategy to profit from potential consolidation may look appealing to retail investors, it is not without risks. As with short straddle, crab depositors stand to lose money if ether charts a violent price move in either direction.. "People are simply going to go bankrupt and they’re not going to be able to feed their families," Jamie Goen, executive director for Alaska Bering Sea Crabbers, told KIMA-TV (opens in new tab), a television station in Yakima, Washington. Hypothetical Crab Strategy returns assuming the ETH price doesn’t change over 0d, 14d, and 28d period As the payoff diagram shows, the crab strategy is suitable for sideways market conditions when ether trades relatively stable. "If ETH moves more than an amount [percentage] that is based on the funding received from the short Squeeth position, the strategy is unprofitable on that day," Prospere wrote in an official explainer. "If the crab Strategy falls below the safe collateralization threshold (150%), the strategy is at risk of liquidation," Prospere added. Read: .