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Risq Protocol DeFi Options Trading Review: New Investment Tool for DeFi Traders

UTC by Benjamin Godfrey · 3 min read
Risq Protocol DeFi Options Trading Review: New Investment Tool for DeFi Traders
Photo: Risq Protocol / Medium

Since Chainlink covers multichain protocols, coverage for additional tokens as the Risq Protocol expands will not come with any challenges whatsoever.

The Risq Protocol is an emerging multichain Defi project that offers users the ability to access a number of mainstream investment products including Options trading. The digital currency industry and decentralized finance as a whole are still in their infancy, and product discovery is currently the order of the day. The DeFi Options trading that is being introduced by the Risq Protocol is a watershed moment for the industry, as the barriers to entry inaccessible similar mainstream products are now available in the nascent DeFi ecosystem.

The Risq Protocol Options trading desk is just one of the major offerings the protocol will introduce as its main goal is to provide a set of tools and dapps for risk and asset management on multiple blockchains, including Binance Smart Chain, Polygon, Ethereum, Arbitrum, and more as the list of EVM compatible blockchains continue to grow.

The Risq Protocol is governed by the RISQ Token. While the token is used to collect and earn trading fees on the Risq Protocol OptionsDesk, its utility is billed to grow as the protocol develops.

Major Highlights of the Risq Protocol DeFi Options Trading

The Risq protocol offers a non-custodial global options trading that runs 24 hours all through the week. Options Contracts are typically an agreement between two parties to facilitate a potential transaction on underlying security at a preset price, referred to as the strike price, prior to or on the expiration date.

Just as we have in the mainstream financial sector, Risq Protocol supports the two types of Options trading, including the Call and Put Options. As a blockchain-based protocol, the settlements for either the Put or Call Options are verifiable on-chain, and traders can choose any strike price for Call / Put options on 14 different DeFi tokens.

The Risq Protocol enables Options Writing, that is liquidity provision, an operation that makes exercising the Options contract a hassle-free activity. The Options Writing is open to everyone, and it gives users the opportunity to earn Premium, which is issued out in the form of fees paid by the Options buyer. The decentralized nature of the liquidity provision amongst various Options writers helps in effective risk management.

Unlike in the traditional Options market where the bulk of users provides the liquidity that powers the market, the Risq Protocol makes it possible for two or more persons to contribute to a single asset, so they can share the risk associated together.

The Risq Protocol offers a censorship-resistant system with a lowered barrier to entry as users do not need to submit KYC documents before being onboarded. In addition, users do not need email to get started, and this gives users control over their privacy.

Multi-Chain Support Underway and Chainlink Integration

The Risq Protocol seeks to cover various DeFi tokens across various blockchains. While still in its infancy, the team behind the protocol is committed to enabling multi-chain support in the near future.

As a protocol whose fundamental product offering is centered on trading on the price movement of assets, a trusted oracle for data feed is required to power the platform’s offerings. As a result, Risq Protocol integrated with Chainlink, the most used Oracle provider in the cryptocurrency ecosystem. By integrating the industry-leading decentralized oracle network, Risq Protocol has access to high-quality, tamper-proof price feeds needed to help ensure accurate pricing on option premiums and profits and losses at the time of exercising options.

Since Chainlink covers multichain protocols, coverage for additional tokens as the Risq Protocol expands will not come with any challenges whatsoever.

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Benjamin Godfrey

Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.

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