Thetanuts V4: A New Foundation for DeFi Options
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Last updated
Thetanuts has always been about pushing the boundaries of what DeFi-native options can look like. With V4, we’re taking a huge leap forward — and here’s a look at what’s coming.
At the core of V4 is a shift to a Request-for-Quote (RFQ) model. Rather than relying on Automated Market Makers (AMMs) to provide liquidity for options trading, V4 will operate through direct quoting by liquidity providers. This model unlocks:
Greater flexibility — tailored quotes for dynamic, event-driven structures.
Better execution — driving tighter spreads and more competitive pricing through open markets.
Deeper liquidity — sourced directly from market participants.
By using RFQs, we enable customized structures which increase predictability, reduce slippage and incentivize optimal pricing — all while preserving a smooth user experience.
To support the RFQ model at launch, we are working closely with select teams to bootstrap quoting activity and build real applications on top of the V4 infrastructure.
Early Support — stealth builders are already testing V4, building their apps, and simulating real-world trading environments.
Scaling Up — as V4's liquidity environment matures, we will help connect early liquidity providers and app teams to professional market makers, deepening the ecosystem and tightening spreads. Eventually, there will be larger support for more customized structures and other product types (e.g. American options).
The RFQ engine needs liquidity to thrive — and by investing into these relationships early, we aim to build a self-reinforcing liquidity flywheel that grows stronger over time.
V4 is designed from the ground up to be chain agnostic. Whether on Ethereum L2s, modular chains, or emerging high-performance ecosystems, our infrastructure is built to adapt. Our guiding principles are simple:
Low transaction costs for efficient strategy execution.
Fast settlement times for smooth trading and payouts.
A vibrant DeFi ecosystem for collaboration and composability.
Instead of being locked into a single ecosystem, Thetanuts V4 will be flexible, and ready to deploy where the best communities and infrastructure exist.
At the core of V4 is a commitment to true DeFi principles — trustless and decentralized infrastructure. In V4:
All trade settlements are on-chain and verifiable by anyone.
RFQ quotes and order execution happen through smart contracts, minimizing reliance on intermediaries.
Fully collateralized on-chain where users interact directly with contracts, knowing that their trades will be honored by the other party, while retaining full control over their funds and positions at all times.
Our long-term vision is to build the Theta System — a modular ecosystem of DeFi options products, all powered by the same RFQ engine, all composable with each other. In the Theta System:
Structured vaults, event-driven options, customized RFQ strategies, and institutional access points will all connect seamlessly.
Builders will be able to plug into the RFQ engine to create new, specialized vaults or trading products.
Liquidity providers and market makers will have access to a unified pool of options flow across products and strategies.
By standardizing liquidity through the RFQ system, the Theta System creates a flywheel effect: More products → More flow → Deeper liquidity → Better pricing → Even more products
Many of you have asked — what will the role of $NUTS look like in V4 and beyond?
We hear you. A full update on how $NUTS fits into the Theta System — including its evolving role in incentives, liquidity, and governance — will be covered in a dedicated future article.
Stay tuned. Big things are in motion.
Thetanuts V4 isn’t just an upgrade — it’s a new foundation. We want to hear from you, if you’re:
Building options protocols, structured products, or volatility strategies
Developing event-driven trading applications,
Working on options or RFQ-related oracle and pricing infrastructure,
Or passionate about reshaping how options markets work in DeFi.
Let’s build the future of DeFi options together!
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