> We see several pain points in providing on-chain liquidity for options:
>
> - Most options, by design, expire worthless. What this means is that an LP will most of the time trend toward 100% loss. To mitigate this, protocols need to protect LPs at the expense of capital efficiency, liquidity available in the AMM and price discovery;
>   - Prohibitive gas costs. Most of the option protocols have been built on Ethereum while L1 gas prices have grown. Options are particularly sensitive to gas given premiums have comparatively low dollar value;
> - Decentralized market-makers have to be hedged.

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A Lot Of On-Chain Options, But Few To Exercise | Zee Prime Capital

> While the most popular underlying assets are ETH and BTC, there are also available products for AVAX, SOL and some other tail assets. These Structured Products have accumulated $600M in TVL, with Ribbon Finance leading this category.