3 - 5 minute read
Thetanuts Finance, a decentralized finance (DeFi) protocol that offers crypto options contracts, has raised a substantial $17 million in a funding round led by Polychain Capital, Hyperchain Capital, and Magnus Capital. The funds will be utilized to create a two-way altcoin options market and expand the list of coins offered, including those with smaller market caps, and tokens from networks that don’t use the Ethereum Virtual Machine (EVM).
Thetanuts Finance currently offers DeFi Options Vaults (DOVs), smart contracts that permit investors to sell call or put options on Ether (ETH), Wrapped Bitcoin (WBTC), Fantom (FTM), Avalanche (AVAX), and other cryptocurrencies. The new options market will blend aspects of an Automated Market Maker (AMM) protocol and traditional money market to provide a unique system for trading options. According to the team, it will be available in beta soon.
The team intends to produce a “buy-side altcoin options market” to attract options purchasers. The announcement noted that DeFi options protocols have previously focused on attracting sellers looking for steady income instead of options traders looking for leverage. The developers hope to be one of the first protocols to provide adequate products for the buy side of the options market.
The traditional futures and options market traded over 60.6 billion contracts in the first nine months of 2022, indicating that crypto firms are increasingly pivoting to the futures market. On April 20, Coinbase announced that it is developing a Bermuda-based crypto derivatives exchange. On April 22, Gemini announced that it would also be offering Bitcoin and Ether options on a non-U.S. exchange in the near future.
Thetanuts Finance has completed a $17M institutional funding round led by @Polychain, @HyperchainC & @Magnus_fund, supporting our ambition to create a thriving two-way altcoin option market and continue to push the boundaries for structured DeFi products.https://t.co/BH4aOUEckd pic.twitter.com/mmGBuCmBHu
— Thetanuts Finance (@ThetanutsFi) April 24, 2023
Functional derivatives are a crucial component of a healthy financial market, according to Josh Rosenthal, portfolio manager at Polychain Capital. He believes the upcoming marketplace will support a stable financial market as the world transitions to Web3.
Thetanuts Finance’s $17 million funding round, led by Polychain Capital, Hyperchain Capital, and Magnus Capital, aims to create a two-way altcoin options market and expand the list of coins offered. The new options market will combine aspects of an Automated Market Maker (AMM) protocol and traditional money market to provide a unique system for trading options. The announcement stated that it will be available in beta soon. The development of a functional derivatives market is critical to a healthy financial market, according to Josh Rosenthal, portfolio manager at Polychain Capital. Traders should keep an eye on the progress of Thetanuts Finance and its new options market, as well as other firms pivoting to the futures market.
The Bottom Line
The $17 million funding round for Thetanuts Finance and the development of a two-way altcoin options market, combined with the growth of the futures market, indicates the continued expansion of the cryptocurrency industry. Traders should monitor these developments and consider the potential opportunities and risks they present.
