Yield is DeFi’s strongest product.
But the next phase of yield will not be built only on incentives, leverage demand, or crowded trades.
It will be built on deeper financial markets.
Volatility is one of them.
Every market has uncertainty. Options turn that uncertainty into a price, a hedge, a risk transfer, and a yield source.
@pendle_fi liberated yield.
@Morpho & @aave enabled capital-efficient lending.
@HyperliquidX made onchain perps trading feel native.
Options are still waiting for their moment.
Volatility is one of the largest asset classes in TradFi. Onchain it’s still mostly inaccessible.
That gap is exactly what we’re here for.
How does this $1.20 option turn into $285 so quickly?
@litocoen was betting ETH would get above $2,050 before expiry.
At first, that looked unlikely, so the option was cheap.
Then ETH moved above $2,050.
Now the bet was working. And the higher ETH went, the more the option was worth.
On the other side, someone sold that option and got paid upfront, taking the risk if ETH kept going higher.
That’s the trade: one side pays for the upside, the other gets paid to take the risk.
Short-dated options can give you a lot of upside from a small upfront cost, but you have very little time to be right.
Layer V is building for both sides of that trade, so buyers can take that view and sellers can get paid for taking the other side.
@Rei_nerrr@DeriveXYZ@nickforster@KevinWSHPod gud summary reiner
the bigger question is how to make all of that useful for normal users, not just people who already understand options
that’s probably the real challenge if options are going to reach the same kind of adoption perps did
tbh this feels like one of the biggest gaps rn
people didn’t suddenly learn derivatives before perps took off. perps just made leverage simple.
options still make users think about liquidity, strikes, expiries etc. the easier all of that feels, the more interesting this gets.
glad to see hypercall pushing this forward too
@nazarius_amb nice research! the early volumes really show real demand for rwa options.
what will grow this market faster is making it super easy for everyday users
- to earn yield from options and
- use leverage with a clear max loss
that’s what we’re building with LayerV as we expand from BTC/ETH into the tokenized stocks and commodities like you covered (Arbitrum in Q4).
happy to share more in dm if useful!
Thank you to the @arbitrum team for the support throughout the Mentorship Program.
Congratulations to the other winners: @CarbonTerminal, @capa_fi and @0xT3tris
Looking forward to our rollout on Arbitrum in Q4.
Options are only getting started.
@BSCNews@CarbonTerminal Appreciate the shoutout!
Glad we were part of Cohort 1 and one of the winners, looking forward to launching on @arbitrum in Q4.https://t.co/yPOFfb4Qqr
DeFi timeline so far:
• AMM-based spot liquidity
• Permissionless lending and credit
• Perpetual futures
• Tokenized yield and fixed-rate markets
• Tokenized Treasuries and private credit
• Tokenized equities
One major market is still missing at scale: liquid, composable #options.
@layerv_official is just finishing the checklist ✅
We're currently in the process of conducting our audit for @layerv_official.
Be sure to keep yourself informed by following @bailsecurity for important updates.
BailSec - exposes risks that others overlook ✅
Every new exchange has the same impossible problem.
You need traders to attract liquidity.
But you need liquidity to attract traders.
So… which comes first?
🧵👇