Decentralized finance is a very compelling industry with many potential use cases and products to be unlocked. For existing and future projects, it will prove essential to offer multiple features users can enjoy. Combining the mining of options with staking capabilities is a powerful combination.
Enhancing The Appeal Of Cryptocurrency
Although there has been a notable increase in demand for cryptocurrency assets such as bitcoin and Ethereum, it remains essential to keep pushing the boundaries of what is possible. Gaining attention from mainstream consumers remains an ongoing challenge in this industry.Service providers need to cater to the needs of the many, rather than copying existing products and services that are only useful to cryptocurrency enthusiasts
As demand for exposure to crypto assets keeps increasing, one has to look at how the overall landscape evolves. Not everyone will buy these assets directly, as some will prefer using options or other “intermediary” vehicles to gain price exposure. Even though there are quite a few options-oriented providers on the market, they mainly focus on the trading aspect rather than bringing extra functionality to the table.
There are different options to explore in this industry. Premia Finance, a protocol established in 2020, aims to serve as a new decentralized finance instrument protocol capable of changing the landscape. By focusing on innovating traditional finance products, users can explore covered Call and Put options for a growing selection of assets on the Ethereum and Binance Smart Chain tokens.
How To Stake on an Option Platform?
Anyone seeking exposure to the cryptocurrency industry will need to be able to hedge their risks. The inherent volatile nature of these assets can trigger significant gains but also involves steep risks. Avoiding that risk factor isn’t always easy, although there are ways to introduce a certain hedge level. Premia Finance providers hedge risk in native token positions, protocol risk, and the ability to earn yield for holding the native token. As the volatility of this industry remains a pressing challenge, investors will actively seek out solutions to navigate troublesome waters.
Its modular platform provides value to direct users and developers looking to leverage the protocol’s capabilities. With minting features – to create custom call/put options for supported assets – and staking functionality – for the native token to receive trading platform fees – there are two exciting features to check out. Premie also provides an Ethereum bonding curve to safely buy and sell the tokens using linear bonding curve mechanics.
With growing support for a wide range of ERC-20 tokens and the addition of Premie Insurance to the Cover Protocol marketplace, the team keeps pushing the boundaries of what is possible in this industry. As the native Premie marketplace noted a significant increase in transaction volume and open interest since launch, the features and services provided by this Defi protocol appear to be in high demand.
By expanding its presence to Binance Smart Chain – the second-biggest DeFi blockchain after Ethereum – the native minting features apply to this blockchain’s assets. The launch on BSC was relatively successful, as the transaction volume was decent. However, the open interest surged quickly, further enhancing the appeal of this decentralized finance protocol.
— Premia – Options Platform (@PremiaFinance) May 21, 2021
Accessibility and composability are two key selling points for Premie Finance. Its use of ERC-1155 as a standard ensures there is no need to deploy a new contract for every ERC-20 token they support. Ethereum contracts remain very expensive to deploy and use, so finding alternative options to introduce cost-saving measures is essential. Moreover, the options provided by the protocol are peer-to-peer and owned by the user without using pooling solutions.
The native support for staking tokens is also worth paying attention to. As staking rewards users with a share of the platform’s fees, it is in their best interest to bring more people to Premie Finance. As more people mint their options, more revenue will be split among the people who stake the native tokens. In essence, this creates an autonomous environment where all users can benefit and thrive.