Thetanuts Finance

Thetanuts Finance is a decentralized options protocol focused on altcoin options, providing users with the ability to go long or short on these assets through on-chain options. It first launched in September 2021 with Basic Vaults, which sold out-of-money (OTM) European cash-settled options to market makers, generating yield for users in the form of option premiums.

The v3 upgrade pivots the protocol towards a fully decentralized on-chain options framework, enabling new use cases in altcoin options trading through its Lending Market and Uniswap v3 Pools. Basic Vault positions are represented by LP tokens ($XYZ-C for call options and $XYZ-P for put options), forming the core of Thetanuts' trading strategies.

As a multi-chain protocol, Thetanuts Finance stands out by focusing on altcoins, which often have higher volatility and limited yield-generating mechanisms. The protocol supports the trading of altcoin options across approximately 10 networks, filling a gap in the market for hedging and speculating on altcoin volatility.

Thetanuts Finance has also achieved significant milestones, such as raising $18 million in a seed round and $17 million in a Series A led by Polychain Capital. The launch of its v3 incentivized alpha in November 2023 and planned v3 mainnet in Q1 2024 mark the next steps in the protocol's evolution.