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Opyn

  • What it is:Opyn is a permissionless decentralized perpetual futures trading platform that allows anyone to deploy trading markets on any ERC-20 token pair with automated market making and portfolio margin efficiency.
  • Best for:Sophisticated DeFi traders, Options market makers, Portfolio hedgers
  • Pricing:Free tier available, paid plans from varies
  • Rating:55/100Average
  • Expert's conclusion:Opyn provides excellent value to users that want to utilize sophisticated DeFi derivatives trading capabilities; however, these users will need to have experience with blockchain technology and be willing to accept the risks of the protocol.
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Reviewed byMaxim Manylov·Web3 Engineer & Serial Founder

What Is Opyn and What Does It Do?

Opyn is an open-source DeFi (decentralized finance) options trading protocol which allows users to purchase, sell, or create options contracts on ERC-20 tokens. This platform offers capital-efficient derivatives technology and risk management tools for DeFi traders and financial products to hedge against price fluctuations of cryptocurrency, or speculate on prices.

Active
📅Founded 2019
🏢Private
TARGET SEGMENTS
DeFi TradersCryptocurrency InvestorsSpeculatorsRisk Managers

What Are Opyn's Key Business Metrics?

📊
$6.7 million
Series A Funding
📊
$2.16 million
Seed Round Funding
📊
$250,000
Regulatory Fine
Regulated By
Regulatory Action

How Credible and Trustworthy Is Opyn?

55/100
Fair

Opyn has both strong technical foundations and a good team of experienced leaders, however, it has serious credibility issues because of regulatory action and the loss of its founding team members.

BREAKDOWN
Product Maturity75/100
Company Stability45/100
Security & Compliance40/100
Transparency70/100
User Reviews65/100
Support Quality60/100
TRUST SIGNALS
Founded by experienced DeFi engineers with quantitative trading backgroundBacked by reputable investors including Dragonfly CapitalFirst live ERC20 options protocol in DeFi

What is the history of Opyn and its key milestones?

2019

Company Founded

Opyn was founded by Aparna, Zubin Koticha, and Alexis Gauba to provide DeFi with derivatives technology and risk management.

2020

V1 Launch (Convexity Protocol)

Opyn was launched in February 2020 as the first fully live ERC-20 options protocol allowing any user to create, purchase, or sell options contracts on any ERC-20 token.

2020

Seed Funding Round

In August 2020 Opyn raised a $2.16 million seed round funded by Dragonfly Capital, along with Version One Ventures, Uncorrelated Ventures, 1kx, and other investors.

2020

V2 Launch (Gamma Protocol)

Opyn was released in December 2020 as the most capital efficient DeFi options protocol, supporting option spreads, combos, and flash mints.

2023

Series A Funding

Opyn secured a total of $6.7 million in Series A funding.

2023

Regulatory Action

Opyn was fined $250,000 in September 2023 for engaging in unregistered trading of derivatives, and for running as a trading platform without having received the necessary licensing.

2023

Founder Departure

In November 2023, co-founders Zubin Koticha and Alexis Gauba announced their departure from the crypto space, and Andrew Keone was appointed as the new Chief Executive Officer of Opyn.

Who Are the Key Executives Behind Opyn?

Aparna— Co-founder and CTO
Got involved in crypto in 2015, and has always been interested in cryptography. He is also the founder of Blockchain at Berkeley, and he teaches the largest university accredited blockchain course. He met his co-founders at Blockchain at Berkeley in 2017.
Zubin Koticha— Co-founder (Exited November 2023)
Has worked in derivatives and structured products within DeFi. He is also the co-founder of Mechanism Labs, and he previously served as the lead researcher at Thundercore. He departed the crypto space in November 2023.
Alexis Gauba— Co-founder (Exited November 2023)
Co-founder with experience working with options trading and derivatives. He participated in Mechanism Labs and Thundercore projects. He exited the crypto space in November 2023. End Text.
Andrew Keone— CEO
Experienced engineer from the Massachusetts Institute of Technology and former Wall Street trader who was essentially the third co-founder of Opyn (the first two were founder’s that left). Was appointed CEO when founders departed.

What Are the Key Features of Opyn?

📊
Options Creation and Trading
Users can create, buy or sell options on any whitelisted ERC20 token with customizable strike prices and customizable expiration dates.
📊
Capital-Efficient Spreads and Combos
The version 2 release enabled options spreads and combinations that allow users to use their long oTokens to collateralize their short oTokens thus requiring only the maximum loss of the entire structure in order to collateralize it.
✨
Flash Mints
Users can now mint options without collateral as long as they burn those options before the transaction is complete thereby increasing capital efficiency.
✨
Auto-Exercise
Options that are “in the money” will automatically exercise at expiration so you do not have to manually settle them.
✨
Early Exercise
Users can now sell options prior to the date of expiration (instead of having to hold onto them) which has been made possible by the new system.
✨
Market-Determined Pricing
Pricing is competitive and is determined by market supply and demand (versus the price models used by other algorithms).
✨
Operator Delegation
Allows operators to perform actions/trade on your behalf – allowing you to delegate trading strategies to another party.
✨
Hedging Tools
A purpose-built derivatives infrastructure for DeFi traders to utilize financial insurance and risk reduction strategies.

What Technology Stack and Infrastructure Does Opyn Use?

Infrastructure

Ethereum blockchain with smart contracts

Technologies

SolidityERC20Ethereum

Integrations

DeFi protocolsCryptocurrency exchangesWallet integrations

AI/ML Capabilities

Not applicable - protocol uses traditional quantitative finance models for options pricing and risk management

Based on official documentation and DeFi Prime interview; specific implementation details limited in available sources

What Are the Best Use Cases for Opyn?

DeFi Traders
Creates hedging strategies to decrease exposure to risk with regards to cryptocurrency assets and DeFi positions utilizing options contracts.
Cryptocurrency Speculators
Provides access to lower cost leverage and directional exposure to cryptocurrency assets with reduced downside risk versus spot trading.
Protocol Treasuries
Hedges cryptocurrency reserves against declines in value and volatility due to the use of options as financial insurance.
Quantitative Traders
Allows users to create complex multi legged strategies such as spreads and combinations for multiple different market scenarios.
Market Makers
Users can provide liquidity to options markets while minimizing risk via the use of collateral efficient spread structures.
NOT FORRegulated Financial Institutions
NOT Recommended - Regulatory risks highlighted by an Enforcement Action filed in September 2023 regarding unauthorized Derivatives Trading.
NOT FORRisk-Averse Retail Users
NOT Ideal – Options trading includes a number of complex mechanisms and also exposes users to the risk of significant losses therefore is not ideal for novice traders.
NOT FORHigh-Frequency Traders
Inadequate suitability - Blockchain is very slow in terms of confirming transactions and Gas prices that cause latency and are not appropriate for sub-second trading.

How Much Does Opyn Cost and What Plans Are Available?

Pricing information with service tiers, costs, and details
☐Service$CostℹDetails🔗Source
Options Trading$0No protocol fees. Users pay 0x protocol fee when buying/selling oTokens on integrated DEX—
Perpetuals Trading$0No protocol fees. Liquidity providers earn trading fees through automated market making vaults—
Liquidity Provision$0Passive liquidity provision to Flo vaults earns fees from all perp trades. No entry fees—
Options Trading$0
No protocol fees. Users pay 0x protocol fee when buying/selling oTokens on integrated DEX
Perpetuals Trading$0
No protocol fees. Liquidity providers earn trading fees through automated market making vaults
Liquidity Provision$0
Passive liquidity provision to Flo vaults earns fees from all perp trades. No entry fees

How Does Opyn Compare to Competitors?

FeatureOpynHegicLyraPrimitive
Core FunctionalityOptions + PerpetualsOptions onlyOptions onlyOptions only
Capital EfficiencySpreads + Flash mintsBasic collateralDynamic AMMBasic collateral
Pricing ModelNo protocol fees0.03% feeAMM feesProtocol fees
Auto-ExerciseYes (v2)ManualYesManual
TradFi EfficiencyPortfolio marginNoNoNo
Free TierYes (no fees)YesYesYes
API AvailabilitySmart contractsSmart contractsSmart contractsSmart contracts
Liquidity Model0x + Uniswap + AMMUniswapDynamic AMMUniswap
Advanced StrategiesSpreads/CombosBasicSpreadsBasic
Permissionless MarketsYesLimitedCuratedLimited
Core Functionality
OpynOptions + Perpetuals
HegicOptions only
LyraOptions only
PrimitiveOptions only
Capital Efficiency
OpynSpreads + Flash mints
HegicBasic collateral
LyraDynamic AMM
PrimitiveBasic collateral
Pricing Model
OpynNo protocol fees
Hegic0.03% fee
LyraAMM fees
PrimitiveProtocol fees
Auto-Exercise
OpynYes (v2)
HegicManual
LyraYes
PrimitiveManual
TradFi Efficiency
OpynPortfolio margin
HegicNo
LyraNo
PrimitiveNo
Free Tier
OpynYes (no fees)
HegicYes
LyraYes
PrimitiveYes
API Availability
OpynSmart contracts
HegicSmart contracts
LyraSmart contracts
PrimitiveSmart contracts
Liquidity Model
Opyn0x + Uniswap + AMM
HegicUniswap
LyraDynamic AMM
PrimitiveUniswap
Advanced Strategies
OpynSpreads/Combos
HegicBasic
LyraSpreads
PrimitiveBasic
Permissionless Markets
OpynYes
HegicLimited
LyraCurated
PrimitiveLimited

How Does Opyn Compare to Competitors?

vs Hegic

Opyn v2 has greater capital efficiency than Hegic due to the use of Spreads and Flash Mints versus Hegic's Basic Collateral Model. There is no fee charged by Opyn, whereas Hegic charges a fee of 0.03%. Hegic is easier to learn for the beginner but lacks the advanced strategies found on Opyn.

Opyn For Sophisticated Traders; Hegic For Simple Put Buying

vs Lyra

Lyra utilizes a Dynamic AMM (Automated Market Maker) which provides better Liquidity than Opyn which utilizes a combination of the 0x Order Book and an Upcoming AMM. While Opyn is much more permissionless (Anyone Can Deploy Markets) than Lyra, Lyra has greater Market Maker Incentives and a Larger TVL (Total Value Locked).

Lyra Leads in Liquidity; Opyn Wins On Permissionlessness

vs Deri Protocol

Deri Offers Perpetuals + Options in One Protocol similar to New Opyn Markets. While Opyn Stays True to DeFi Principles (Non-Custodial, Immutable), Deri Uses A More Centralized Risk Engine. The Portfolio Margin of Opyn Provides Greater Capital Efficiency Than That Of Deri.

Opyn for Pure DeFi; Deri for Broader Deriv Strategy Coverage

vs Perpetual Protocol

Perpetual Protocol Dominates Linear Perps, while Opyn Markets Adds Curved/Stable Perps. The Portfolio Margin Across All Types of Collateral Provided By Opyn Is More Capital Efficient Than the Single-Collateral Model of Perpetual.

Opyn Markets Challenges Leaders in Perps With Portfolio Margin Innovation

What are the strengths and limitations of Opyn?

Pros

  • No Fees Charged by the Protocol — Users Only Pay 0x DEX Fees Making It Cost Competitive
  • Capital Efficient Spreads — Long oTokens Used as Collateral to Short Positions Reduces Requirements
  • Permissionless Creation of Markets — Anyone Can Create Markets for Options/Perps on Any Token
  • True DeFi Principles — Non-Custodial, Immutable, Transparent Smart Contracts
  • Portfolio Margining — Collateral Works Across Perps, Vaults, and Uniswap LPs
  • Auto-Exercise Functionality — Options Settle Automatically At Expiration If They Are In-The-Money
  • Flash Mint Capability — Mint Options Without Collateral As Long As They Are Burned In The Same Transaction

Cons

  • Too Advanced for Beginners — Spreads and Advanced Strategies Require Options Knowledge
  • Fragmentation of liquidity – Spreads exist across 0x, Uniswap, and future AMMs
  • Gas Costs Significant – Multiple Approvals and Interactions Increase Ethereum Fees
  • Asset Coverage Limited to Whitelist – Options Creation Depends on Tokens Included in a Whitelist
  • Counterparty Risk in Spreads – Collateralized by Protocol Mechanics
  • No Mobile Interface – Desktop Wallet Required and Web Interface Must Be Used
  • Dependency on Market Makers – Active Provision of Liquidity Necessary to Maintain Tight Spreads

Who Is Opyn Best For?

Best For

  • Sophisticated DeFi traders — Capital Efficient Spreads and Advanced Strategies Available Nowhere Else
  • Options market makers — Permissionless Markets and No Protocol Fees – Maximize Profitability
  • Portfolio hedgers — Portfolio Margin Across Multiple Types of Collateral and Positions
  • DeFi protocols needing hedging — On-Chain Insurance Through oTokens Against Smart Contract Risks
  • Liquidity providers seeking yield — Flo Vaults Earn Passive Income From All Perp Trades

Not Suitable For

  • DeFi beginners — Steep Learning Curve Due to Terminology Regarding Spreads and Options – Instead Use Simple Hedging Platforms
  • High-frequency traders — Slow Settlement Times and Gas Costs Make It Difficult to Trade Sub-Minute – Consider Using Derivatives Offered on a Centralized Exchange (CEX)
  • Retail investors wanting simplicity — Too Many Steps Involved in Options Trading on Ethereum Mainnet – Use a Centralized Options Platform
  • Low gas fee environments needed — Options Trading Is Expensive When Done With Multiple Transaction Steps on Ethereum Mainnet – Consider Using an L2 Derivatives Platform

Are There Usage Limits or Geographic Restrictions for Opyn?

Token Whitelisting
Only whitelisted ERC20s can have options created
European Options Only
Cash-settled, exercisable only at expiry
Collateral Requirements
Max loss of spreads posted as collateral
Gas Approvals Required
Multiple ERC20 approvals needed per trade
Network Availability
Ethereum mainnet only, no L2 support mentioned
Auto-Exercise Threshold
Only in-the-money options auto-exercise
Market Creation
Permissionless for perps, whitelisted for options
Trading Hours
24/7 on-chain, subject to Ethereum network congestion

Is Opyn Secure and Compliant?

Non-CustodialUsers retain control of funds and collateral at all times through smart contracts
Immutable ContractsDeployed smart contracts cannot be changed or upgraded after deployment
Transparent SettlementAll trades settle on-chain via 0x and Uniswap with full transaction visibility
Cash-Settled OptionsNo asset transfer at expiry, reduces smart contract settlement risk
Overcollateralized PositionsSpreads fully collateralized by max potential loss calculation
Battle-Tested v1Launched 2020, processed millions in options volume without exploits
Open Source CodeAll smart contracts publicly auditable on GitHub repositories
Auto-Exercise SafetySettlement price finalized on-chain preventing manipulation

What Customer Support Options Does Opyn Offer?

Channels
Opyn v2 documentation on GitHubCommunity support via DeFi forums and Discord
Specialized
None - community and documentation only
Business Tier
N/A - permissionless protocol
Support Limitations
•No dedicated customer support channels
•Fully decentralized - users self-manage via smart contracts
•No phone, email, or live chat support

What APIs and Integrations Does Opyn Support?

API Type
Smart contract interactions via Ethereum RPC/Web3
Authentication
Wallet signature (EIP-712, permit), no API keys
Webhooks
None - event monitoring via blockchain indexers (TheGraph)
SDKs
Web3.js, Ethers.js, official v2 contracts on GitHub
Documentation
Comprehensive GitHub docs for v2 protocol and oTokens
Sandbox
Ethereum testnets (Goerli, Sepolia) for testing
SLA
Smart contract based - depends on Ethereum network uptime
Rate Limits
Ethereum gas limits and network congestion
Use Cases
Programmatic options minting, trading via 0x, hedging strategies

What Are Common Questions About Opyn?

oTokens Are ERC-20 Tokens That Represent Cash-Settled European Options Contracts. oTokens Can Be Minted by Sellers Who Have Sufficient Collateral to Do So, and Traded on Decentralized Exchanges (DEXs) Like Uniswap Via Integration With the 0x Protocol.

V2 Introduces Spreads Where Long oTokens Collateralize Short oTokens, Requiring Only the Maximum Loss as Collateral. V2 Includes Flash Mints and Auto-Exercise for In-the-Money Options at Expiration.

The Opyn Protocol Does Not Charge Any Fees; Users Only Pay 0x Protocol Fees When Buying/Selling oTokens, Plus Ethereum Gas for Each Transaction Made.

Opyn Is Non-Custodial and Executes Transactions Using Smart Contracts. User Funds Remain in Their Wallets, and Security Is Dependent Upon Audited Smart Contracts and Proper Management of User Wallets.

Yes, V2 Allows for Permissionless Creation of Whitelisted Options Products. Anyone Can Deploy New Markets for Any ERC20 Token, Which Means There Will Be Many More Options Products Created.

Select option series and strike price; Approve USDC; Purchase oToken using the interface; Confirm the transaction(s) on MetaMask; Check your position on the dashboard or Etherscan.

The first version of Convexity (V1) were basic ERC20 options. The second version of Gamma (V2) added spreads, flash minting, auto-exercise, 0x trading, and limit orders to increase both efficiency and liquidity.

There isn't an official mobile application. It connects with any Web3 wallet that uses Ethereum. Users can trade oTokens on any decentralized exchange (DEX) that supports ERC20 tokens.

Is Opyn Worth It?

Opyn is a leading decentralized finance (DeFi) options protocol providing advanced derivatives trading capabilities, such as spreads and capital-efficient strategies. Version 2 of the protocol has significantly improved both the liquidity and usability of the platform through its integration with 0x and auto-exercise features. This protocol is most suitable for advanced DeFi users who are willing to accept the risks associated with smart contracts.

Recommended For

  • Advanced DeFi traders wishing to use options for hedging and leverage
  • Developers of Ethereum-based derivatives applications
  • DeFi protocols requiring embedded risk management
  • Speculators that have experience with and are willing to accept the risks of impermanent loss and gas costs

!
Use With Caution

  • New to DeFi traders - this type of trader will require knowledge of managing wallets and paying gas
  • Liquidity-starved markets - wide bid/ask spreads may exist
  • Environments where high gas prices exist - high gas prices can make it difficult or expensive to execute trades

Not Recommended For

  • Retail traders seeking a user-friendly UI to trade
  • Investors that are risk-averse and do not feel comfortable with the concept of smart contracts
  • High frequency traders requiring sub-second order execution
  • Budget-conscious users that are sensitive to gas prices
Expert's Conclusion

Opyn provides excellent value to users that want to utilize sophisticated DeFi derivatives trading capabilities; however, these users will need to have experience with blockchain technology and be willing to accept the risks of the protocol.

Best For
Advanced DeFi traders wishing to use options for hedging and leverageDevelopers of Ethereum-based derivatives applicationsDeFi protocols requiring embedded risk management

What do expert reviews and research say about Opyn?

Key Findings

Opyn was one of the first platforms to offer DeFi options, which debuted in v1 (2020). The platform then evolved into a capital efficient version, v2 (Gamma Protocol), which offers the ability to buy and sell options through the use of spreads, 0x trading, and auto-exercise. Opyn's focus is on hedging and speculation utilizing ERC20 oTokens, which can be traded on any decentralized exchange (DEX).

Data Quality

Good - comprehensive protocol details from DefiPrime, GitHub docs, official site. Limited current activity data as DeFi derivatives evolved rapidly post-2021.

Risk Factors

!
Despite audited code, users still face the risks associated with smart contracts.
!
Users will also face the risks associated with Ethereum gas prices and potential congestion of the Ethereum network.
!
Some options markets may have low liquidity and therefore users may see large bid/ask spreads.
!
Risks of oracle or settlement price manipulation. The following are examples of how you can make your responses more user-friendly:
!
v1 & v2 have matured but their reliability is still unknown
Last updated: February 2026

What Are the Best Alternatives to Opyn?

  • •
    Hegic: A simple on chain options protocol that uses a peer to pool model for options with term length that is known. This protocol is simpler than using an opyn spread because it has fixed premium rates. This is good for use in a call or put that does not need a lot of complexity. (hegic.com)
  • •
    Dopex: Options dApps with single stake option vaults (SSOVs), which allow users to provide liquidity to the dApp. The liquidity providers will receive a higher percentage of interest than those who trade on the Opyn platform. This is a good choice for yield farmers who want to provide options liquidity. (dopex.io)
  • •
    Lyra: An advanced DeFi platform for buying/selling options with an Automated Market Maker (AMM) model, which provides dynamic pricing. This platform is better than Opyn's on order book model because it is more automated. It is good for retail traders who want to automate the process of creating market making. (lyra.finance)
  • •
    Premia: A decentralized options platform that uses a Uniswap V3 style concentrated liquidity model. This allows liquidity providers to optimize their LP positions by limiting the range of prices they are willing to accept. This is a good choice for professional market makers who want to optimize their liquidity ranges. (premia.finance)
  • •
    Squeeth (Opyn Squeeth): A perpetuals protocol from Opyn that allows users to buy/sell squared exposure of ETH. This product is similar to power perpetuals, but unlike vanilla options. This is a good choice for experienced ETH volatility traders who want to trade ETH volatility. (squeeth.opyn.co)

What Additional Information Is Available for Opyn?

Protocol Evolution

Started as Convexity Protocol v1 (February 2020) and was first to offer basic ERC20 options. The protocol evolved to be Gamma Protocol v2 (December 2020) and included support for spreads and 0x integration. Today, the protocol supports perpetuals markets through Opyn Markets.

Key Innovations

First DeFi platform to allow users to create ERC20 options (version 1). The protocol introduced a number of new features including spreads, flash mints, and auto-exercising. The protocol also allowed for permissionless market deployments for any whitelisted token.

Funding History

The company raised a $2.16 million seed funding round in August 2020 led by Version One Ventures. The funding round included participation from investors such as DeFi Primitive Venture, Hashed, and Deer Park Road.

Current Focus

The company shifted its business model from offering options to offering perpetuals and now offers curved AMMs, portfolio margin, and permissionless markets through Opyn Markets. Additionally, the company offers automated market making vaults for users who want to passively provide liquidity.

Ecosystem Integration

The company integrates deeply with 0x for oToken trading and utilizes Uniswap liquidity for minted options. Users can also utilize flash loans to optimize collateral usage and implement arbitrage strategies.

What Are Opyn's Trading Metrics?

Low (protocol infrastructure)
24h Trading Volume
N/A (primarily institutions)
Unique Traders (30d)

How Does Opyn's Supported Markets Compare?

AssetContract TypeMax Leverage24h Volume
wBTC-USDPerpetualVaries by market
wETH-USDPerpetualVaries by market
stETH-USDPerpetualVaries by market
UNI-USDPerpetualVaries by market
ARB-USDPerpetualVaries by market

Permissionless market deployment on any ERC-20 pair via Uniswap pools

How Are Fees Structured for Opyn?

Maker Fee
0% (protocol fees)
Taker Fee
0x protocol fee only
Funding Rate Interval
Varies by market
Liquidation Fee
N/A (cash-settled options)
Withdrawal Fee
Gas fees only
Fee Discounts
No protocol fees

What Is Opyn's Leverage Margin?

Max Leverage
Portfolio margin across perps and collateral
Margin Mode
On-chain portfolio margin with spreads
Initial Margin
Max loss posted as collateral
Maintenance Margin
Spreads enable capital efficiency
Collateral Types
USDC, whitelisted ERC-20s, long oTokens
Auto Deleverage
No liquidations (cash-settled)

How Does Opyn Manage and Mitigate Risk?

Portfolio Margin

The company offers margin across perps, collateral, vaults and Uniswap LPs

Spreads

Shorting oTokens will require users to post the maximum potential loss (long oTokens) as collateral.

Auto-Exercise

In-the-money options automatically exercised at expiry

Chainlink Oracle

Cash settlement using trusted oracle prices

No Liquidations

European cash-settled options eliminate liquidation risk

Limit Orders

Free limit orders via 0x relay and settlement

What Is Opyn's Security Audits Status?

Multiple Smart Contract AuditsProtocol infrastructure audited
Non-CustodialUsers retain control of funds
Immutable CoreNo arbitrary parameter changes
Bug Bounty ProgramCheck Immunefi for active program
Security IncidentsUsed as infrastructure by other protocols
Oracle SecurityChainlink price feeds

What Is Opyn's Governance Token?

Token Name
No native governance token
Governance Rights
Permissionless deployment
Staking Rewards
Automated market making vaults
Trading Fee Share
0% protocol fees

Which Blockchains Does Opyn Support?

Ethereum

Primary deployment on Ethereum mainnet

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