Thetanuts Finance, a decentralized finance (DeFi) protocol offering crypto options contracts, has raised $17 million with the support of crypto investment firms Polychain Capital, Hyperchain Capital and Magnus Capital. The funds will be used to create a buy-side altcoin options market, attracting options purchasers, expanding coin offerings and introducing a unique system combining aspects of an Automated Market Maker protocol and traditional money market.
Until now, DeFi options protocols have been mostly focused on attracting sellers looking for steady income sources. Thetanuts wants to turn that trend around, providing adequate products for the buy side of the options market as well. With the new marketplace, the team is hoping to contribute to the shift from web2 to web3 being steady and balanced.
Thetanuts currently offers DeFi Options Vaults (DOVs), allowing investors to sell call or put options on Ether (ETH), Wrapped Bitcoin (WBTC), Fantom (FTM), Avalanche (AVAX), and other cryptocurrencies. With the new funds, the protocol is aiming to expand coin offerings to include more “altcoins” or coins with smaller market caps, including tokens from networks utilizing solutions outside of the Ethereum Virtual Machine (EVM).
A growing number of crypto companies are leveraging the futures and options market, with platforms such as Coinbase and Gemini both offering Bitcoin (BTC) and Ether options on non-US exchanges. The research conducted by the global trade organization FIA shows that the traditional futures and options market traded over 60.6 billion contracts in the first nine months of 2022.
Josh Rosenthal, portfolio manager at Polychain Capital, said that the new marketplace from Thetanuts would have a pivotal role in support of a stable financial market during the transition between web2 and web3. Functional derivatives, according to Rosenthal, are a key component in maintaining the stability of the financial system.
Thetanuts’ mission is to become one of the first protocols to provide comprehensive products for the buy-side of the DeFi options market. The team emphasized their commitment to reshape the decentralized asset landscape, adding that the upcoming options marketplace would not only boost overall DeFi adoption but also further enhance the confidence of the crypto asset investors.
Talia Ross
- 2023-04-24
Thetanuts Finance to Disrupt DeFi Options with $17M
Thetanuts Finance, a decentralized finance (DeFi) protocol offering crypto options contracts, has raised $17 million with the support of crypto investment firms Polychain Capital, Hyperchain Capital and Magnus Capital. The funds will be used to create a buy-side altcoin options market, to attract options purchasers, expand coin offerings and introduce a unique system combining aspects of an Automated Market Maker protocol and traditional money market.
