AD Derivs: Insights from Crypto Option Traders cover image

AD Derivs. Podcast (Ep. 14) - Josh Lim - Previously Head of Derivatives @GenesisTrading

AD Derivs: Insights from Crypto Option Traders

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The LIDO ETH - Is That a Risk-Free Trade?

The LIDO trade, which is basically the E2.0 and the regular ETH that at some point should converge when you can access your E 2.0 on the Beacon Chain or whatever it is. That was trading at a discount to regular ETH because of a liquidity premium,. Because you don't get to access it until you merge. So therefore, people were kind of getting levered up and buying that LIDO ETH andBasically hedging it with whatever regular ETH futures  and just waiting for that spread to collapse.

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