The Opium decentralized finance (DeFi) protocol has unveiled a brand new option to enhance returns on Ethereum via extremely leveraged publicity.
The artificial derivatives Opium Network has unveiled a brand new approach of incomes returns on Ethereum utilizing leverage via “Turbo ETH” geared toward DeFi buyers looking for larger dangers.
The protocol added that it has responded to various requests for much less conservative merchandise for Ethereum derivatives.
Turbo ETH will permit buyers to purchase a brief expiry place that offers a extremely leveraged publicity to the underlying asset.
“You purchase Turbo for the mounted worth, and if the underlying asset goes above specified strike worth, you’ll have an upside — you’ll earn a excessive return inside a brief interval, normally a day.”
10x-30x Leveraging on ETH
Leveraged derivatives are incredible when costs are going up however will be painful if markets flip south. Nonetheless, the Turbo ETH product solely entails losses of the ‘Turbo’ itself, not the Ethereum it’s monitoring.
For example, ETH is buying and selling at $2,400 and a Turbo is bought at $66 at a strike worth of $2,500. There will likely be a 10x to 30x leverage on the distinction above the strike worth so if ETH closes the day at $2,600 ($100 above the strike worth), the Turbo will likely be burned and payout $100. The upper the asset’s closing worth above the strike worth, the upper the Turbo payout.
On the draw back, if the value of ETH closes beneath the strike worth the Turbo will likely be burnt and there will likely be no payout leading to solely the lack of the price of the Turbo.
Opium additionally introduced a brand new liquidity pool fashioned by stakers to cowl the Turbo merchandise. Customers stake ETH into the pool to cowl mining of Turbos, receiving the charges from the Turbo purchasers (prices of Turbo) in return. There are further rewards within the day by day appreciation of ETH as much as 3%, whereas features over 3% go to the Turbo purchasers.
The ultimate a part of the announcement was that Opium has gone stay on the Polygon community to enhance transaction instances and prices. Stablecoin protocol mStable additionally introduced a launch on Polygon right this moment.
OPIUM worth replace
Opium’s native token of the identical identify has made 4.5% on the day to succeed in $7.63 in response to CoinGecko. OPIUM hit an all-time excessive of $23 on Feb. 4 however has but to get anyplace close to these heights since.
DeFiPulse is reporting present TVL at $4.4 million, half of its $9 million peak in late February.