Intro to NiftyOptions

NiftyOptions is the first on-chain 🧙‍♂️ NFT options protocol 🧙‍on Ethereum mainnet. Through this innovative approach, users can now hedge their NFT assets against market volatility.

First off, what actually is an option? Well, according to our suits on Wall Street:

A Financial Option is a contractual agreement which gives one party the right but not the obligation to exchange a specified asset, with the other party, at a specified price (called the strike price or exercise price) at a specified later date

In laymen terms, an NiftyOption can be thought of as a smart contractual promise to keep an offer to sell an NFT at a certain price, open for a certain period of time between two people. The person selling the NFT promises to keep the offer open for a specified period, in exchange for a small fee (called a premium) from the other person.

What can you do with NiftyOptions?

• Hedge - Create an NiftyOption on your current NFTs, as a strategy to protect against the downside risk! If the price of the NFT falls, the investor can guarantee the amount of ETH they will be able to get, while only losing out on the premium paid.

• Borrow Against — Collateralize your NFT on specific lending markets like https://nftfi.com/. The lender will have a guarantee on the underlying amount of ETH available in the options contract until expiration.

• Sell at a Premium — Soon, NFTs not wrapped in an option contract will be considered “naked” or “unhedged”. Buyers searching for a new NFT would potentially be open to paying a premium for an NFT that is associated with an existing option already, as there is a pre-determined price floor.

Can you think of any more? Join us over at our discord and discuss!!