Options · Review
ActiveOpyn Convexity Review 2026: Cash-Settled Options on Ethereum
Opyn Convexity is an Ethereum options protocol with European, cash-settled contracts that auto-exercise at expiry. It is a small, older part of the wider Opyn family, and suits users who already understand options risk.
By the DappsAtlas editorial team · Updated
DappsAtlas score
5.8/10
Mixed
Our verdict on Opyn Convexity
5.8/10Opyn Convexity suits experienced DeFi users who want simple, European, cash-settled options on Ethereum and understand collateral and expiry risk. Its main strength is a clear contract design from a team with a long record in on-chain options, plus open-source code. The main caveat is size and attention: TVL is around half a million dollars, the audit details are not listed in the tracked data, and Opyn's homepage now focuses on a separate perps product. Check regional rules and read the documentation before using it.
Score breakdown
How Opyn Convexity scores
- Security
- 6.0/10
- Ease of use
- n/a
- Fees
- n/a
- Features
- 5.5/10
Scores run from 0 to 10 and are based only on facts we could verify. Where information was missing we mark the score n/a rather than guess.
What is Opyn Convexity?
Opyn Convexity is an options protocol on Ethereum. It offers European, cash-settled options that auto-exercise at expiry. The code repository says it lets options sellers earn premiums on their collateral. It is tracked as one of three products under the Opyn parent, next to Opyn Gamma and Opyn Squeeth.
The tracked data shows about $567,000 in total value locked, up 2.8% over the past week, and a listing date of the end of 2022. It has no token of its own. That is a small amount of capital, so liquidity is limited.
Opyn's main website now promotes Opyn Markets, described as Uniswap for perps, with the launch marked as coming soon. That homepage cites more than $16 billion in total notional volume across Opyn, a $1 million bug bounty and backing from investors including Robot Ventures, 1kx, Coinbase and Coinfund. These figures cover the wider Opyn brand, not Convexity alone.
How Opyn Convexity works
An option gives the buyer the right, but not the obligation, to buy or sell an asset at a set price on a set date. Opyn Convexity runs this on Ethereum with smart contracts. A seller locks up collateral and creates an option token. A buyer pays a premium for it.
The options are European and cash-settled. They can only be exercised at expiry, and settlement is made in cash terms rather than by delivering the underlying asset. If the option is in the money at expiry it is exercised automatically, so the holder does not need to act.
Sellers earn the premium for taking on risk. Their collateral can be used up if the market moves against them. Buyers can lose the whole premium if the option expires worthless.
6 features
Key features
01
European-style options
Contracts can only be exercised at expiry, which keeps settlement rules simple and predictable.
02
Cash settlement
Settlement is made in cash terms rather than by physical delivery of the underlying asset.
03
Auto-exercise at expiry
Options that finish in the money are exercised without the holder having to act.
04
Premiums for sellers
Sellers can post collateral and earn premiums from buyers, according to the project's code repository.
05
Hedging use case
Options can be used to hedge or manage risk on an asset, a use case the Opyn team has described since the protocol's early days.
06
Public smart contracts
Open-source contracts are published in a public repository, so anyone can read the code.
Pros and cons
What we like
- Clear, simple option design: European style, cash-settled, auto-exercised at expiry.
- Open-source contracts in a public repository.
- Built by the Opyn team, which has worked on options on Ethereum since 2020.
- Opyn advertises a $1 million bug bounty and lists well-known investors.
- Sellers can earn premiums on collateral they already hold.
Watch out for
- No named audit firms or reports are listed in the tracked data, so the audit status cannot be verified from there.
- TVL is small, at roughly half a million dollars, which can mean thin liquidity and wide pricing.
- Options are complex, and sellers can lose collateral if the market moves against them.
- The main Opyn website now focuses on a perps product marked as coming soon, so Convexity gets little attention there.
- Access is restricted for users in some territories, and wallets that try to connect from them can be blocked after repeated attempts.
- No fee schedule is published in the material reviewed.
Opyn Convexity fees
Opyn does not publish a fee schedule for Convexity in the material reviewed. Costs would include Ethereum gas for every transaction and any premium or spread built into the option price you trade at.
Check the protocol interface and its documentation for any protocol fee before you trade. Gas on Ethereum can vary a lot, which matters more on small positions.
Is Opyn Convexity safe?
The tracked data lists no audits for Convexity. The Opyn homepage has an audited-by section and a $1 million bug bounty, but the names of the auditors are not visible in the text reviewed. Treat the audit status as unconfirmed until you see the reports on Opyn's own channels.
The protocol runs through smart contracts on Ethereum, so the main risks are contract bugs, price or settlement problems and your own collateral being liquidated or lost on a bad trade. Small TVL adds liquidity risk. Opyn restricts access from some territories and says repeated connection attempts from them can get a wallet blocked, so check local rules first. This is not financial advice.
6 steps
How to get started with Opyn Convexity
- 1
Confirm that using the protocol is allowed where you live, since Opyn restricts some territories.
- 2
Read Opyn's documentation and the contract repository to understand how collateral, premiums and settlement work.
- 3
Set up an Ethereum wallet and fund it with ETH for gas and the collateral asset you plan to use.
- 4
Start with a small position to see how pricing, gas and settlement behave.
- 5
Track your option's expiry date and collateral level, because European options settle only at expiry.
- 6
Check whether the audit reports you rely on are published by Opyn before adding larger amounts.
Who Opyn Convexity is for
Convexity fits users who already know how options, premiums and collateral work and want to trade or sell them on Ethereum. It is not suited to beginners or to anyone who needs deep liquidity or a broad set of markets.
Opyn Convexity FAQs
What is Opyn Convexity?
Opyn Convexity is an on-chain options protocol on Ethereum, built by the Opyn team. It offers European, cash-settled options that exercise automatically at expiry. Its code repository describes it as letting options sellers earn premiums on their collateral.
What does European, cash-settled, auto-exercise mean?
European options can only be exercised at expiry, not before. Cash-settled means the holder receives the value in cash terms rather than taking delivery of the underlying asset. Auto-exercise means in-the-money options settle without the holder acting.
Which blockchain does Opyn Convexity run on?
The tracked data lists Ethereum as the only chain. The protocol does not have its own token.
Is Opyn Convexity audited?
The tracked data lists no audits for this product. The Opyn homepage shows an audited-by section and a bug bounty of one million dollars, but the auditors cannot be confirmed from the text reviewed. Check Opyn's own documentation and the code repository before depositing funds.
How is it different from Opyn Markets?
Opyn Convexity is the original options protocol and is tracked alongside Opyn Gamma and Opyn Squeeth under the Opyn parent. The newer Opyn Markets pitch on the homepage covers perpetuals and is marked as coming soon. They are different products.
Are there regional restrictions?
Yes. The Opyn site shows a restricted-territory notice and says repeated wallet connection attempts from such places can lead to a blocked address. Check the Terms of Service and the rules where you live before connecting a wallet.
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How we checked
Sources
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