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:
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.
Visit the Wasabi Protocol website at Wasabi.xyz
Connect your wallet: To interact with Wasabi Protocol, you'll need a compatible Ethereum wallet (such as MetaMask) with sufficient funds.
Select the "Buy Options" button.
Choose your asset pair: Select the desired NFT Collection (ERC-721 token pair) for which you want to trade options.
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.
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.
Place your order: Click on the "Buy" button to place your order. Your wallet will prompt you to approve and sign the transaction.
Monitor your position: Track the performance of your options contracts and manage your positions through the Wasabi Protocol dashboard.
Diversify your portfolio: Invest in options across multiple ERC-721 token pairs to minimize the impact of adverse price movements in a single asset.
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.
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.
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.