Decentralized options trading platform Opyn has launched put options on Curve Finance’s governance token CRV, allowing traders to short the token.
Put options give traders the right, not the obligation, to sell an underlying instrument at a fixed price on or before the expiry date. Opyn’s CRV put options have a strike price of $3 and expire on September 25, meaning traders would have the right to sell CRV at $3 even if the token’s price drops to zero. One CRV is currently priced at $3.5.
Opyn allows traders to buy a put option by paying a U.S. dollar-denominated premium. In return, buyers receive oTokens, which represent the right to sell underlying tokens. oTokens can be traded on a decentralized exchange like Uniswap at any time before expiry.
Opyn currently also offers put options for Compound’s COMP token, wrapped ether (WETH) and Yearn.Finance's YFI token. Earlier this month, the platform suffered an exploit on the ether (ETH) put options, which resulted in a loss of around 371,000 USDC.
Compound’s Robert Leshner is an investor in Opyn, along with Haseeb Qureshi and Tom Schmidt of Dragonfly Capital, and former Coinbase executive Balaji Srinivasan, among others. Opyn raised $2.16 million in funding this June.