Weekly Review. January 21, 2022

Macro view: Despite a relatively stable market situation, the general mood in the markets is far from the bullish trend highs. The sharp decline of -9% overnight from Thursday to Friday is rather atypical and has no discernible reason. Some signals of local “overbought” markets (size of the open interest in the futures market and the growing trend of increasing leverage) formed on 13–15 January can only partly explain such a sharp decline. The correction with the US tech stocks market probably played a role — they have also mostly corrected in value.

Main news:

  • US congressional hearings on bitcoin mining postponed, but planned climate law could have a direct impact
  • Mining difficulty increased by 9% over the past week
  • The FED released its own report on the digital dollar and central bank digital currencies (CBDC), hoping for a broad public discussion. In the meantime, the digital yuan had a turnover of over 13 billion USD and 200+ million users.
  • Twitter has finally launched its own product integration with NFT, allowing users to set up NFT logos on their profile.

1. Trading strategies for DOT/BUSD

Local trend: Another parachain auction (#8) has started. The main contender is Centrifuge. The team representatives together with participants of the most important Acala ecosystem projects took part in The Crypto Finance Conference in st. Moritz, where they made several presentations to a wide range of investors and developers. Despite this, DOT reacted to the decline of larger assets — BTC and ETH, by losing around 20% over the week.

Options premium table for liquidity providers

Calculation of theoretical premiums based on the average historical volatility (10, 30, and 60 days) when placing orders on January 21, 2022 with the option execution date on January 28, 2022.

2. Trading strategies for WMATIC/DAI

Local trend: the team launched a motivational initiative for web 3.0 developers: together with ETH Global, they offer to participate in the app-building and receive a grant. With 349k daily active users, the number of transfers increased by 5.6% over the week to 3.38m, and daily revenue reached 102k per day. The protocol helped to save 144m on commissions.

Options premium table for liquidity providers

Calculation of theoretical premiums based on the average historical volatility (10, 30, and 60 days) when placing orders on January 21, 2022, with the option execution date on January 28, 2022.

3. Trading strategies for BNB/BUSD

Local trend: The price’s steep decline came as a surprise to the token. Even though it is losing in value, but much less than other assets — 14% from the highs of the week. This is largely due to the team’s phenomenal activity: Binance has turned into a professional machine for launching various crypto projects and activities. Twitter updates (which have more than 7.3m followers) come out every few hours.

Options premium table for liquidity providers

Calculation of theoretical premiums based on the average historical volatility (10, 30, and 60 days) when placing orders on January 21, 2022, with the option execution date on January 28, 2022.

4. Trading strategies for BTC/BUSD

Local trend: The sharp decline that started at the end of the US trading session and continued at the beginning of the Pacific session was a surprise to the market and did not have a strong information trigger (potential regulation of mining and cryptocurrency turnover by the Russian Central Bank is not that important to the market). Going forward, the BTC market continues to be under pressure from expected rate hikes and reduced liquidity. On the other hand, the crypto market landscape has changed a lot compared to last year: if a year ago the $1 trillion capitalization corresponded to a 60+% domination index and a price of 40 000 for 1 bitcoin, now the price is the same but the domination is 40% and the capitalization of the entire crypto market is 1.9 trillion. It looks like the rules of the game are about to change.

Options premium table for liquidity providers

Calculation of theoretical premiums based on the average historical volatility (10, 30, and 60 days) when placing orders on January 21, 2022, with the option execution date on January 28, 2022.

5. Trading strategies for WETH/BUSD

Local trend: After the bitcoin plunge and the subsequent revaluation of ETH, a number of traders were faced with the necessity of filling up their pawning positions on decentralized services (Maker/AAVE) to avoid liquidations. The price is now testing a strong support line at 2 800, and according to jarvisLab analysts, the next significant levels to borrow are 2 400 (where 500m of liquidity is blocked) and 2 000 (where the volume is 1 billion).

Options premium table for liquidity providers

Calculation of theoretical premiums based on the average historical volatility (10, 30, and 60 days) when placing orders on January 21, 2022, with the option execution date on January 28, 2022.

6. Trading strategies for AAVE/BUSD

Local trend: The exchange rate continues to follow the general trend, having lost 22% during the week. However, this did not affect the protocol operation much, rather the opposite — a large number of loans, liquidations will allow to get additional profit. In this context, the report on the status of the protocol’s “treasury” is revealing: for December the protocol earned about 2.26m, with a total accumulation of about 560m. There are serious proposals to change the protocol’s work — changing the motivation for attracting deposits, the ability to diversify the vault through the purchase of CVX tokens, and several other important updates that may change the protocol’s efficiency in the near future.

Options premium table for liquidity providers

Calculation of theoretical premiums based on the average historical volatility (10, 30, and 60 days) when placing orders on January 21, 2022, with the option execution date on January 28, 2022.

7. Trading strategies for HAPI/BUSD

Local trend: HAPI is the only token whose price dynamics have not matched the general market. The price has been rising all the week, reaching highs of 36 USD, correcting after that to a level of 32 USD. The news on the team’s functionality split was received positively by market participants. The engineers will concentrate on their initial goals for the valid address registry, while the rest Boca Chica team will continue to develop independently by launching their own token.

Options premium table for liquidity providers

Calculation of theoretical premiums based on the average historical volatility (10, 30, and 60 days) when placing orders on January 21, 2022, with the option execution date on January 28, 2022.

8. Trading strategies for EGLD/BUSD

Local trend: The project continues its progressive development, perhaps not as fast as other blockchains, but more smoothly. A major p2e game, kings-of-Cathena, from a German game studio was announced. In addition, the EGLD token was added by Crypto..com as valid collateral for loans and margin positions (up to 50% of the value).

Options premium table for liquidity providers

Calculation of theoretical premiums based on the average historical volatility (10, 30, and 60 days) when placing orders on January 21, 2022, with the option execution date on January 28, 2022.

8. Trading strategies for EGLD/BUSD

Local trend: The project continues its progressive development, perhaps not as fast as other blockchains, but more smoothly. A major p2e game, kings-of-Cathena, from a German game studio was announced. In addition, the EGLD token was added by Crypto..com as valid collateral for loans and margin positions (up to 50% of the value).

Options premium table for liquidity providers

Calculation of theoretical premiums based on the average historical volatility (10, 30, and 60 days) when placing orders on January 21, 2022, with the option execution date on January 28, 2022.

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P2P options trading platform on Binance Smart Chain, Ethereum

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delta.theta

delta.theta

P2P options trading platform on Binance Smart Chain, Ethereum

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