What is Opyn ?
Opyn is an insurance and DeFi risk management platform built on its options protocol (Convexity) that covers insurance on ETH, DAI and USDC on Compound (cDAI, cUSDC). For Compound depositors, users receive cTokens as proof of deposits and can purchase oTokens which are the tokenized insurance contracts. If there is an issue with your Compound deposit, you can user your cTokens and oTokens to make a claim at any time to receive immediate payout. Opyn is a two-sided marketplace, so any individuals interested in putting down ETH collateral and earning a premium(oToken) can be its insurance underwritters. These positions are overcollateralized with the minimum collateralization ratio set at 140%. Opyn provides easy-to-use American options to hedge ETH risks. Users can buy put options on ETH at Opyn and sell the ETH at the contractual price later on before the expiry date. Users can become insurance underwriters on Opyn by providing USD collaterals for the ETH hedging service (selling an ETH put option) to earn higher premium but with the risk of ETH falling below the strike price. This APY varies between 80%-300% depending on the expiry date. Opyn's specialized smart contracts are of critical importance and have been [audited](https://blog.openzeppelin.com/opyn-contracts-audit/) by [OpenZepplin](https://openzeppelin.com/). Opyn is governed by its core team and no platform tokens are issued so far.