Options premium volumes and trading activity are ramping up as users explore new areas in DeFi. More than 80% of the total on-chain options volumes are concentrated in leading protocols, Ithaca and Derive.
Over the last week, Ithaca processed $26 million in volume and Derive recorded $11 million, while the third-busiest protocol, Overtime, recorded just $2 million. While the exact catalyst for the growth isn’t clear, it could be a combination of traditional lending platforms like Aave offering lower yields than in prior years, and also potentially some anticipation of Hyperliquid’s upcoming HIP-4 markets, which will allow users to trade binary outcomes that function similarly to options.
Just yesterday, a popular DeFi trader known as Route 2 Fi posted on X, “Where are people getting yield these days? 2% APR on USDT at Aave isn’t exactly sexy.” The post gained significant traction online, indicating that many DeFi participants are also seeking new, lucrative yield sources.
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