D

Decentralized Derivatives

"Derivatives is going to be the next big thing in DeFi space."

D

Decentralized Derivatives

"Derivatives is going to be the next big thing in DeFi space."


The problem Decentralized Derivatives solves

1.The Platform is American Options based Platform to Purchase and Sell XTZ Call Options.
2.Underlying Asset used for the settlement is XTZ.
3.Call Option Sellers would also be receiving Staking Rewards since Tezos is Liquid Proof-of-Stake Blockchain.
4.OrO Oracle would be updating the XTZ/USD Pair price every 1 hour.

writeXTZ is the LP Token for the Pool to represent one's share in the Automated Market Maker Option Contract.
The Pool contract would be fetching price of XTZ/USD pair on the Purchase and Exercise of Call Options.

Call Option Contract - KT1BkhBYZe3mLjsGmtBqWVCxQHgC2AwCYLG2

Oracle Contract - KT1XRvMnhYrxTthYTouHXbKnyzwVJVRuwi12

LP Token Contract - KT1JfjUfz7P5PXwKGE3pLsfBWUyqn84XrrHa

Challenges I ran into

1.Developing Oracle and Cron Job

2.Writing AMM(Automated Market Maker) functions for Call Options

3.Determing Strike Price and Premium Values

Discussion