Opyn – the decentralized options trading protocol – has announced the launch of their v2 product, the team is calling it the most powerful and capital-efficient options protocol on Ethereum.

 

Since it’s initial release in February 2020, the options protocol has managed to process over $105mm of cumulative notional volume. At this time, users can trade only trade ETH <> USDC options on Opyn v2. The version 2 release features an update  to the protocol UI and introduces the new “Gamma Protocol”.

According to the Opyn team, Gamma Protocol sets the foundation for capital-efficient options starting with spreads. The update also enables auto-exercise for in the money options, so option holders don’t need to take action before or at expiration.

The protocol is also making a structural change and adopting cash-settled, European options. The change to European style options will mean that option holders can only exercise upon expiry. Cash-settlement means that options can be settled in the collateral asset and holders can receive a simple cash payout.

Yield-bearing assets such as aTokens & cTokens can now be used as collateral in the Gamma Protocol. Options created through Gamma Protocol take the form of erc-20 tokens called oTokens, which can be traded on any decentralized exchange.

Opyn v1 will stay in operation and provide a platform for users that prefer American style, physically settled options. You can access Opyn v1 here.

Opyn v2 aka Gamma Protocol was audited by OpenZepplein, additionally, the team has been running a bug bounty program for the past four weeks. Additional security audits have been lined up for the next few weeks to ensure audits are up to date with the everchanging technology landscape of DeFi.

Keep up with Opyn by following them on Twitter.