Learn about DeFi Derivatives in The Premia Academy.

Learn about DeFi Derivatives in The Premia Academy. Premia Blue is the premier DeFi options academy.

Welcome to the GMX Recruit course, cadet. Complete this course as part of the GMX Recruit campaign on Galxe to earn a custom NFT badge as you prepare for Premia Blue's Trading Competition!

💎 Welcome to The Blue Season

What Are Derivatives?

DeFi Derivatives: Derivatives such as options and perpetual futures unlock a greater amount of flexibility when compared to simply holding an asset.

What Are Derivatives Useful For?

Derivatives in DeFi

Learn about GMX inside The Premia Academy.

Learn about GMX inside The Premia Academy. Premia Blue is the Premier DeFi Options Academy.

GMX: Decentralized Perpetuals Exchange

GMX is the blue-chip decentralized perpetuals protocol on Arbitrum. In this article, you will learn about GMX, GLP, and the new GM liquidity pools.

💡 Premia Blue x GMX

Introduction to GMX

GLP Framework for Deep Liquidity

GLP: A novel liquidity provision system that allows anyone to contribute to liquidity on the platform.

GMX v2 – What’s New?

Advanced GM Liquidity Pools

Benefits of Trading on GMX

Learn about the differences between perpetual futures and options inside The Premia Academy.

Learn about the difference between perps and options inside The Premia Academy. Premia Blue is the Premier DeFi Options Academy.

Perpetual Futures vs DeFi Options

What are options, what's the difference between perps and options, and what makes them useful in different situations? 

💡 Comparing Derivatives: Perps vs Options

Introduction

Options are financial derivatives that give their holder the right, but not the obligation, to buy (call) or sell (put) a token like ETH at a specific price and date.  They're flexible while providing inherent leverage, and have an upfront cost (premium).

Perpetual futures allow traders to speculate on the future price of an asset without being bound by an expiration date. They're often paired with margin (leverage), and come with their own set of risks.

Perpetual Futures vs Options: Pros

Pros of Options

Pros of Perps

Premia Blue: Users can deploy different options strategies to net a profit in varying conditions: bearish, bullish, and even when the markets are chopping sideways.

Cons of Options

Cons of Perps

GMX: Traders can engage in trading perpetual futures, utilizing their unique features such as high leverage and the absence of expiry dates to execute  strategies on varying timeframes or capitalize on short-term market movements.

Key Takeaways

Perpetual Futures vs Options

Learn about Strategy Vaults on Premia Blue inside The Premia Academy.

Users can easily provide liquidity on Premia Blue using automated Strategy Vaults. Depositing assets to a Vault nets users a proportional share of PnL, Premia rewards, and ARB incentives from the Vault.

💡 Strategy Vaults

GMX Call Vault (Bearish): Users can participate in an automated GMX call-selling strategy. This Vault is inherently bearish, and might lose in up-trending market conditions.

GMX Put Vault (Bullish): Users can participate in an automated GMX put-selling strategy. This Vault is inherently bullish because it sells put options, and might lose in down-trending market conditions.

Using Premia Blue’s GMX Vaults

1. Go to the "Vaults" tab inside app.premia.blue

2. Filter by the asset of the Vault you want to deposit to. In this case, GMX.

3. Click on the Vault you want to deposit in. Users can deposit GMX to the Call Vault, or USDCe to the Put Vault. Traders can use Premia Blue's in-app Swap & Bridge to get the asset they need.

4. Here, you can see how the Vault functions, and its historical performance. Remember that the Call Vault is a bearish strategy, while the Put Vault is a bullish strategy. Next, click "Add" to add liquidity to the Vault.

5. Enter the amount of GMX or USDCe you want to deposit. To ensure the deposit is registered for The Blue Season Galxe quest, use a minimum amount of 0.25 GMX or 10 USDCe.

6. Approve and Sign the transaction in your wallet, and you're done! Your position is now accruing a proportional share of PnL, PREMIA rewards, and ARB incentives.

GMX Vaults on Premia Blue

Test your knowledge of GMX, Premia Blue, and DeFi Options!

Exam: GMX Recruit

Learn about GMX, DeFi derivatives, and the differences between options and futures to earn a custom NFT badge as part of The Blue Season!

Course overview

GMX Recruit

Derivatives in DeFi

GMX: Decentralized Perpetuals Exchange

Perpetual Futures vs Options

GMX Vaults on Premia Blue

Exam: GMX Recruit