Hedging Volatility in Crypto Markets with Non-Custodial Options Protocols
Crypto traders and treasuries can hedge against price volatility using non-custodial options protocols. These platforms allow users to interact through their wallets and settle trades on-chain, providing an additional layer of control.
The five established protocols mentioned in this article are Derive, Aevo, Hegic, Panoptic, and Kyan. Each offers a unique set of features catering to different trader needs and risk tolerance levels.
Derive is a decentralized options and perpetuals exchange that supports assets like BTC and ETH. It enables cross-margin, cross-asset collateral, and portfolio margin, which assesses risk across an entire portfolio rather than treating every position in isolation.
Aevo combines options, perpetual futures, and structured products in a single cross-margin account, allowing traders to offset risk across instruments instead of managing separate collateral pools for each one.