As decentralized finance (DeFi) matures, users are turning to alternative platforms, such as onchain options, to generate higher returns.
Onchain options activity reached an all-time high over the past two weeks, with volume reaching $44 million in the first week of February and $28 million in the last week of January.
Onchain Options Volumes – DeFiLlama
More than 80% of the total volume of onchain options is concentrated in the leading protocols Ithaca and Derive. This past week, Ithaca handled $26 million in volume and Derive recorded $11 million, while the third busiest protocol, Overtime, registered just $2 million.
While the exact catalyst for the growth is not clear, it could be a combination of traditional lending platforms like Aave offering lower returns than in previous years, and possibly also some anticipation of Hyperliquid’s emerging HIP-4 markets, which will allow users to trade binary outcomes that function similarly to options.
Yesterday, a popular DeFi trader known as Route 2 Fi posted on The post received a lot of attention online, indicating that many DeFi participants are also looking for new, lucrative revenue sources.