Deribit Launches USDC-Settled Options for AVAX and TRX

TLDR

• Deribit launches USDC-settled options for AVAX and TRX, enhancing altcoin trading options.
• Each AVAX option represents 100 AVAX, and each TRX option represents 10,000 TRX in notional size.
• Users in eligible jurisdictions holding USDC can earn monthly USDC rewards for trading these options.
• Options offer traders the ability to profit from price movements without holding the underlying asset.
• These new options provide liquidity and efficiency by using USDC as the settlement currency.

Deribit has launched USDC-settled options for two major altcoins: Avalanche (AVAX) and Tron (TRX). The new products join the existing USDC-settled perpetual markets for both coins. Users in eligible jurisdictions with USDC in their Deribit accounts are eligible for monthly USDC rewards.

USDC-Settled Options for AVAX and TRX

The new options for AVAX and TRX allow users to trade these altcoins using USDC as the settlement currency. Each option contract for AVAX represents 100 AVAX, while each TRX option contract represents 10,000 TRX. These contracts provide more flexibility for traders and investors interested in these altcoins, particularly for speculation, hedging, and yield generation strategies.

Deribit’s introduction of these options enhances its altcoin product offerings, with both AVAX and TRX options linked to USDC. This makes it easier for users to access and trade without needing to hold the underlying cryptocurrency. The ability to settle in USDC also offers greater liquidity and efficiency.

How Options Work: Calls and Puts

Options are financial instruments that give buyers the right to buy or sell an asset at a predetermined price before a specific date. Call options allow users to buy, while put options allow users to sell the underlying asset. The option buyer pays a premium for this right and faces limited risk while having the potential for unlimited profit.

In the case of AVAX and TRX options, call options provide the right to buy these altcoins at a fixed price, while put options give users the right to sell at a set price. These new options offer traders and hedgers the flexibility to profit from price movements without needing to hold the actual underlying asset.

Deribit’s new USDC-settled options market for AVAX and TRX will also offer monthly USDC rewards for users in eligible jurisdictions. This reward system incentivizes traders to engage with these markets. Holding USDC in Deribit accounts allows users to benefit from these rewards as they trade these altcoin options.

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