Decentralized Volatility Trading

Allows traders to gain exposure to advanced option payoffs in the form of a token.

Decentralized Volatility Trading

Created At


Project Description

How it's Made

Theoretically we would use the Opyn ETH options and find a way to pair them with Synthetix or Aave's synthetic version of ETH and package these two into one token. Note that we would go long or short the appropriate amount of ETH based on the option delta. For example, if an ETH put option had a delta of -0.43, then we would need to buy +0.43 units of synthetic ETH to remain delta-neutral for the token. Another key problem to address is how often to hedge given the prohibitively high gas costs.

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