Traders 📈 buy and sell options, and they do it for a myriad of reasons, among them:

  • Limit losses: Hedging the risk exposure of their portfolio against sudden price changes

  • Exposure: Gaining exposure to markets they wouldn't have access to otherwise (ex: commodities market)

  • Leverage: Because options are much cheaper to purchase in comparison to the underlying asset, you can purchase more and get more upside potential

  • Strategies: Options allow us the flexibility to come up with many strategies that both limit risk and maximize return.

In doing so traders are usually concerned with meeting two conditions:

  1. Efficient prices: so that they can rest assure they're not overpaying for an option, or selling it underpriced.

  2. High liquidity: so that they enter / exit options positions without hassle.

Our liquidity pool has been designed to provide just that, efficient prices and high liquidity, which we believe will incentivize traders into adopting our exchange.

Even though traders can interact with the Defi Options exchange directly for making deposits, providing collateral, writing tokenized options and managing their options portfolio, buying and selling of options will happen from trader to trader, or through a liquidity pool. That's because the options exchange is only responsible for providing an environment for trading options, but not for pricing them, nor providing liquidity.

Last updated