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What Is the Trend regarding the Adoption of American Vs. European Options in Decentralized Finance (DeFi)?

DeFi predominantly uses European-style options due to the complexity of implementing American option pricing logic in smart contracts.
Greeks.Live23.11.25

What Is the Trend regarding the Adoption of American Vs. European Options in Decentralized Finance (DeFi)?

The majority of decentralized options protocols in DeFi currently offer European-style options. This is primarily due to the complexity of implementing the continuous optimal early exercise logic of American options into smart contracts, which requires complex, computationally intensive on-chain pricing models.

European options are simpler to price and settle on-chain.

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