Nexo Options
Protocol Documentation
What is Nexo Options?
Nexo Options is an on-chain options trading protocol on Base. It is based on a peer-to-pool AMM model, and unlike other options markets where a buyer and seller directly interact, in Nexo Options the sellers take positions through the Stake & Cover pool.
You can trade BTC or ETH call and put options with ATM (at-the-money) and OTM (out-of-the-money) strikes, along with multiple one-click strategies depending on market sentiment (Bullish, Bearish, High or Low Volatility). All options are settled in USDC.
Nexo Options are American-style options, which means they can be exercised at any time before expiry (with the exception of Inverse strategies).
Why trade options on Nexo Options?
What’s the point of options trading in general? Here are a few key reasons:
HEDGING: Options allow traders to reduce risk exposure.
YIELD: Options can generate yield or income across different market conditions.
LEVERAGE: Options provide exposure similar to owning an asset but with less capital required, offering more leverage and portfolio flexibility.
SPECULATION: Traders can speculate on whether the price of an asset rises, falls, or stays within a range.
How do I participate in Nexo Options?
There are two main strategies for market participants:
Trading options as an options buyer.
Providing liquidity through the Stake & Cover pool.
Buyers acquire options for ETH and BTC, while liquidity providers allocate $NEXO tokens into the S&C pool and share in the protocol’s P&L distribution.
Who created Nexo Options and who runs it?
Nexo Options was created and is operated by a solo anonymous developer. For more background, you can read Crypto Anonsense: The Story Behind Nexo Options.
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