option contracts

According to reports, DeFi asset management company MEV Capital uses option contracts issued by cryptocurrency derivatives expert OrBit Markets to hedge liquidity provider positions and prevent losses in Uniswap (v3) liquidity pools. At maturity, the option contract is settled off the counter. If the value of the liquidity provider’s (LP) position increases, MEV Capital pays the balance, or if the value of the LP position decreases, the option counter settles the difference with MEV. DeFi Asset Management Company MEV Capital provides Uniswap hedging strategy Analysis based on this information:Reports reveal that MEV Capital, a popular DeFi asset management company, has teamed up with OrBit Markets, a cryptocurrency derivatives expert, to manage its liquidity provider positions more effectively. With DeFi protocols becoming more popular and innovative, managing liquidity provider positions in Uniswap (v3) liquidity pools has become increasingly challenging. By using option contracts, MEV Capital has found a way to hedge their positions and prevent significant losses. The option contract issued…

On March 10, according to Deribit data, option contracts with more than US $500 million BTC and US $360 million ETH will expire and be delivered today. The maxi