1Option

1Option is a decentralized, permissionless protocol that allows anyone to mint, buy, and exercise covered options built on top of the 1inch Limit Order Protocol as a settlement layer. It leverages off-chain signatures, on-chain NFT minting, and tokenized collateral to create a new class of decentralized financial derivatives without relying on a traditional order book model.

Built a decentralized options trading protocol as an extension on top of the 1inch Limit Order Protocol (LOP). The goal was to enable users to buy and sell covered options using off-chain signed orders that mint ERC721 option tokens on-chain only when the order is filled.

The core technologies used are:

• Solidity: Core contracts including OptionNFT, which implements ERC721Enumerable to represent each minted option. The logic handles EIP-712 signature verification, permit-based token transfers, and option exercise.

• 1inch Limit Order Protocol: Extended LOP via its interaction mechanism to trigger option minting logic when an order is filled. Orders are signed off-chain and executed on-chain.

• EIP-712 Signatures: Used for both the LOP order signatures and the custom Option struct, allowing us to verify maker intent securely off-chain.

• ERC20 + IERC20Permit: To support gasless collateralization, leveraged the permit() function to authorize collateral transfers (e.g., WETH ).

• Javascript + ethers.js: For building and signing EIP-712 orders off-chain, encoding interactions, and simulating fillOrder() calls.

• Hardhat: Local development, testing, and deploying smart contracts. LOP, OptionNFT contract, Mock Tokens

• NodeJS, Express JS, SQL : Backend relayer to manage off-chain orders and store EIP712 signatures.