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In Options Trading, Why Might a Trader Prefer a Wrapped Token as Collateral?

A wrapped token allows a trader to use the value of an asset from another chain (like BTC) as collateral in a DeFi ecosystem (like ETH).
Greeks.Live16.11.25

In Options Trading, Why Might a Trader Prefer a Wrapped Token as Collateral?

A trader might prefer a wrapped token as collateral to gain exposure to the underlying asset's value while operating within a specific DeFi ecosystem. For example, using wBTC as collateral allows a trader to leverage Bitcoin's value for an options trade on the Ethereum network, which offers a broader range of DeFi protocols and liquidity.

It increases capital efficiency.

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