Decentralized Finance (DeFi) is evolving at such a speedy fee that new funding autos seem each day, with Opium providing the most recent.
In what it has described as “a method for bearish traders,” the artificial derivatives community Opium Community has unveiled a product that gives safety in opposition to giant downward actions in Ethereum costs.
Opium has defined that its “ETH Dump Safety” relies on a “protecting put possibility” which is a method for traders who imagine that the worth of an asset will drop sooner or later, including:
“It may be utilized by bullish traders to hedge in opposition to doable losses and acquire draw back safety.”
In a tweet on June 13, Opium claimed that it really works like every other decentralized insurance coverage. Traders purchase safety for a premium and, In case the asset falls under the strike worth, they obtain the distinction between the strike worth and the present worth of ETH.
Rooting for the bears
Derivatives supply the choice to go brief on an asset, and that is mainly fueling that motion by providing rewards if the asset plummets.
“If you’re bearish on an asset, you should utilize the ETH Dump Safety as a part of the traditional technique for brief buying and selling: should you assume ETH will plummet reasonably than develop, purchase the ETH Dump Safety and receives a commission when ETH goes down. “
The providing is a part of the Opium insurance coverage suite of the protocol, launched in December 2020, which affords totally different ranges of safety for varied DeFi methods, good contracts and crypto belongings.
In early April, Opium Finance partnered with Gnosis and the Common Market Entry (UMA) platform to introduce extra correct optimistic oracles and fewer inclined to cost manipulation.
Later that month, the DeFi protocol launched a “Turbo ETH” leverage product that allowed merchants to put leveraged bets on worth will increase.
The final Opium announcement was in late Might for a product primarily based on derivatives to safe SpaceX launches.
OPIUM worth outlook
The native coin of the identical identify, Opium, has gained 3.4% on the day to achieve $ 2.15 at press time.
Nevertheless, its worth has been trending decrease because the starting of February, and it’s at the moment a painful 90% under its all-time excessive of $ 23.
With an impressive providing of 6.7 million tokens, OPIUM has a present market capitalization of $ 14.3 million, making it a small fish in comparison with many different DeFi tokens.
The publish Opium Finance affords DeFi safety in opposition to Ethereum dumps was first seen on BeInCrypto.