TLDR:
- Deribit introduces option contracts for Avalanche (AVAX) and Tron (TRX) fully settled in USDC.
- The new instruments allow for risk hedging strategies without physical token delivery.
- Contract sizes have been set at 100 AVAX and 10,000 TRX to facilitate institutional exposure.
Deribit is expanding the tools available for volatility trading with the addition of AVAX and TRX options. These new contracts were designed to be 100% settled in the USDC stablecoin, ensuring full alignment with its existing perpetual products. Consequently, traders will be able to manage their positions with greater capital efficiency by using a standardized and predictable settlement currency.
The inclusion of AVAX and TRX on Deribit allows users to access call and put rights on the underlying assets without the obligation of physical delivery at expiration. Since these are cash-settled contracts, the platform facilitates operations for investors seeking price exposure to Avalanche and Tron. It is worth noting that, for the time being, the firm will not accept deposits of the native tokens as collateral to cover margin requirements.
Hedging and Yield Generation Strategies with Derivatives
The arrival of AVAX and TRX to Deribit opens the door to financial strategies such as hedging spot positions against potential market downturns. By purchasing put options, an investor secures a fixed selling price, obtaining a payout in USDC if the market falls below the strike price. This protection is fundamental for large holders who wish to maintain their exposure to the ecosystem without assuming excessive depreciation risks.
Furthermore, the platform encourages the generation of passive income through strategies such as covered calls using AVAX and TRX options on Deribit. Option sellers can receive direct premiums in USDC, assuming certain obligations in exchange for consistent returns in sideways or moderately bullish markets.
In summary, with contract sizes of 100 AVAX and 10,000 TRX, Deribit consolidates its position as the preferred venue for institutional altcoin derivatives trading in today’s crypto environment.
