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Motivation

It is now 2023. With the proliferation of on-chain exchange protocols, such as Uniswap, the time is ripe to build derivative products on top of them.

The intrinsic properties of blockchains, along with the maturing of DEXes, make them well-suited for implementing and enforcing options contracts.

  • The nature of options contracts is such that there are defined, unambiguous parameters that determine behaviour (as opposed to contracts that you have to battle terms over in a court.) This is precisely what smart contracts are capable of.
  • The 2 references that an options contract needs, time and price of underlying asset, have reliable sources within the blockchain.
    • Timestamps are a native component of most blockchain protocols.
    • Price references from DeFi spot exchanges, which provide censorship-resistant prices of token assets, are readily accessible within the blockchain.
  • Options contracts, on traditional exchanges, are traded in a fungible manner. This makes them ideal for tokenization - another feature smart contracts are adept at.
    • Once tokenized, these contracts can be readily traded via the aforementioned DEXes.
    • With further adoption, they can even be traded on CEXes.


Mission

Accelerate on-chain accessibility to derivatives, via the creation of derivative instruments for both stand-alone use and integration into more complex products, paving the way towards a more decentralized financial ecosystem.