The Wasabi Protocol is revolutionizing the world of non-fungible tokens (NFTs) by offering traders a platform to buy and sell options on ERC-721 contracts. As the NFT market continues to flourish, Wasabi Protocol aims to bring sophisticated trading opportunities to the space. With a successful two-month testnet phase under its belt, the protocol is preparing for its mainnet launch.

Wasabi Protocol is now live in closed beta! To access the protocol, you must be a holder of the Wasabi Pass, which serves as an access token to the protocol. Once acquired, follow these steps to get started:

How to Trade on Wasabi Protocol

Options trading allows investors to buy and sell contracts that give them the right, but not the obligation, to buy or sell an underlying asset at a specific price on or before a specific date. Wasabi Protocol brings this concept to the NFT space, enabling traders to capitalize on the potential growth or hedge their positions in the ERC-721 market.

Step-by-Step Guide to Trading NFT Options

1. Visit the Wasabi Protocol website at Wasabi.xyz

2. Connect your wallet: To interact with Wasabi Protocol, you'll need a compatible Ethereum wallet (such as MetaMask) with sufficient funds.

3. Select the "Buy Options" button.

4. Choose your asset pair: Select the desired NFT Collection (ERC-721 token pair) for which you want to trade options.

5. Set your contract parameters: Define the option's strike price, expiration date, and whether you want to buy a call (right to buy) or put (right to sell) option.

6. Review the premium: The premium is the price you'll pay to purchase the option contract. Review this amount and ensure it aligns with your trading strategy and risk appetite.

7. Place your order: Click on the "Buy" button to place your order. Your wallet will prompt you to approve and sign the transaction.

8. Monitor your position: Track the performance of your options contracts and manage your positions through the Wasabi Protocol dashboard.

Risk Management Strategies for NFT Options Trading

1. Diversify your portfolio: Invest in options across multiple ERC-721 token pairs to minimize the impact of adverse price movements in a single asset.

2. Set stop-loss orders: Establish stop-loss orders to automatically close your positions if the underlying asset's price moves against your prediction, limiting potential losses.

3. Employ a disciplined approach: Establish a trading plan with clear entry and exit criteria, and stick to it. This will help you maintain a consistent approach and avoid emotional decision-making.

4. Stay informed: Keep up-to-date with market trends, news, and developments in the NFT and DeFi sectors, as these factors can influence the value of your options contracts.