Multi-chain platform FinNexus has released details of its upcoming decentralized options trading competition. The platform, which facilitates options trading along with liquidity mining and staking, is giving away 60,000 FNX in prizes – over $25,000 at the time of writing. The trading contest will commence on April 15 at 12:00 UTC, and conclude fifteen days later at the same time.
An Options Trading Battle Royale
FinNexus says the battle royale is the first cross-chain decentralized options trading competition in history, with traders able to participate via three separate blockchains, namely Ethereum, BSC, or Wanchain. Entrants’ performance will be gauged on the three chains together, and there is no sign-up process: all addresses automatically qualify to provide they meet certain requirements.
Participants can trade options on any underlying asset – BTC, ETH, LINK, MKR or SNX – with any strike price or expirations at their own discretion, with no cap on amounts and trading available round the clock. The performance will be determined according to the rate of return rather than the size of the principal, meaning even players with a low stake can ascend to the top spot.
The competition winner is set to take home a top prize of 20,000 FNX, while the runner-up will claim 10,000. Traders ranked third, fourth and fifth in the league table will win 3,000 FNX apiece, and those ranked six to 40 will each earn 600 FNX. Results will be calculated using on-chain addresses and compared off-chain, with traders required to use empty addresses to qualify. Results will be disclosed three days after the close of the competition and rewards dispensed on the same date.
Crypto trading competitions have proliferated at a rapid rate in recent years, particularly in the wake of the defi boom. In common with other competition organizers, FinNexus stipulates that traders must deposit initial funds before the start of the contest, and interactions with contracts other than those offered on the protocol are deemed invalid. There is also a minimum deposit requirement of $300.
Funding Rounds and FPOs
One of the first platforms to offer options trading in the booming defi space, FinNexus’ flagship Protocol for Options (FPO) enables customers to write, buy and settle options via a pooled liquidity system, which spreads the risk and allows them to share premiums.
FinNexus recently completed a $1.5 million financing round with investment from several VC funds including IOSG Ventures, DeFi Capital, Parallel Ventures, and Incuba Alpha Labs. The platform has also launched several liquidity pools of late, giving users the opportunity to earn FNX and cFNX. (The latter can be transferred to FNX at a 1:1 ratio.)
Decentralized call options are becoming more popular, with major DEX Sushiswap recently partnering with UMA to offer call options for xSushi tokens for the first time.
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