How Does a Cash-Settled Option Differ from a Physically-Settled Option On-Chain? ⎊ Path

How Does a Cash-Settled Option Differ from a Physically-Settled Option On-Chain?

A cash-settled option pays the difference between the strike price and the spot price in a stablecoin or cryptocurrency. A physically-settled option requires the actual delivery of the underlying asset upon exercise.

On-chain, the smart contract for a cash-settled option only needs the final price data to calculate the payment, while a physically-settled option must also manage the transfer of the underlying asset.

What Is the Difference between Physically-Settled and Cash-Settled Crypto Options?

How Does the Settlement Process Differ between Cash-Settled and Physically-Settled Futures?

Does Transaction Malleability Affect the Validity of the Underlying Transfer of Value?

What Is the Primary Difference between a Physically-Settled and a Cash-Settled Futures Contract?

What Is the Difference between the ‘Pay-Per-Share’ (PPS) and ‘Proportional’ (PROP) Reward Systems in Mining Pools?

How Does a Cash-Settled Futures Contract Differ from a Physically-Settled One in This Context?

How Does the Legal Concept of Ownership Transfer Apply to a Tokenized Asset?

Explain the Difference between Physically-Settled and Cash-Settled Futures Contracts

Glossar

Gas Cost Implications

Transaction ⎊ Gas cost implications within cryptocurrency represent the computational effort required to execute and validate transactions on a blockchain, directly impacting the economic feasibility of decentralized applications and derivative strategies.