Exploring Decentralization Options: All Set, Just Awaiting the East Wind

Decentralization Options are smart contracts issued on the blockchain that have the attributes of options. Compared to the traditional options market, they are permissionless, transparent, and have no default risk, allowing for stronger composability with other decentralized products. The execution of options is guaranteed by blockchain smart contracts, which execute automatically, and this is the main difference between decentralization options and traditional options.

The advantages of decentralized options are mainly reflected in:

1. Eliminate default risk
2. Fairer
3. Deeper and closer capital collaboration

The decentralized options market is still in its early stages and facing some bottlenecks:

1. High cost of use, including operating expenses, risk costs, and educational costs.
2. The market is immature, lacking stable demand and sufficient liquidity
3. Low capital efficiency and high margin requirements
4. The infrastructure is underdeveloped, and the trading interface and tools need improvement.

The decentralized options track is mainly divided into three categories:

1. Automated classic options market making, such as Lyra, Deri, Optix, etc.
2. Structured products, such as Ribbon Finance, Cega, etc.
3. Exotic Options Design, such as Y2K Finance, Opyn, etc.

Future development direction:

1. Improve capital efficiency and reduce costs
2. Develop more structured products, especially low-risk, medium-low yield products.
3. Strengthen collaboration with other DeFi products
4. Explore more on-chain unique application scenarios
5. Improve user friendliness and lower the learning threshold.

Overall, the decentralized options market is still in its early stages, but it has great potential for development. With the improvement of infrastructure and the emergence of innovative applications, it is expected to play a more important role in the future DeFi ecosystem.