❓FAQs

Here you can find all the answers to commonly asked questions about Options.Market

What is Options.Market?

Options Market is a decentralized application that allows anyone to create, trade, and redeem fully-collateralized options contracts for any ERC20 token.

What are options?

Options give traders the right (not obligation) to buy or sell the underlying asset at a predetermined price at a known time in the future. This allows hedging against price changes, and speculation.

How does Options.Market work?

Both long and short sides of options contracts are tokenized to create secondary markets. Buyer’s side (bToken) gives the holder the right to purchase or sell the underlying asset at a predetermined strike price. Seller’s/writer’s side (wToken) allows the holder to withdraw the collateral (if the option was not exercised) or withdraw the exercise payment (if the option was exercised) from the contract after expiration.

What is the value proposition of Options Market?

Options Market fills a unique market niche by catering specifically to sophisticated parties interested in holding and actively trading tokenized options contracts. The nascent cryptocurrency derivatives market has the potential to have trading volume in the trillions, and we are poised to capture a significant share of the market looking for a flexible, fully-decentralized, user-friendly product that allows for self custody and advanced positions. Unlike any other cryptocurrency options platform, Options Market has tokenized both sides of an option contract, allowing for a fully-tradeable options ecosystem that can be traded as easily as a standard ERC20. Options Market allows for both buyers and sellers to mint, buy, and trade in and out of options positions at any time.

Why cross-chain?

We have taken the decision to implement a cross-chain protocol in order to further the development of the protocol and to offer various options alternatives on an ever-increasing number of chains. We are now live on Avalanche, and we will be porting $OSM tokens to multiple chains in order to incentivise activities on all the chains on which the protocol runs.

What is $OSM token?

$OSM is the native and only token of the Options.Market ecosystem. It was launched with a total token supply of 100,000,000, and the distribution of the token can be found here: https://t.ly/fWC2.

$OSM holders will have governance rights and will allow holders to vote on various initiatives, as well as token dynamics such as rewards, emissions and fees that can be activated within the protocol.

Is the code audited?

Siren's code has been audited and since we have utilised the full code base from Siren, the cost and effort of an additional audit has, at this time, been deemed not to be necessary.

In addition, we are also reviewing all the communication of v3 of the Siren code with a view to implementing the changes that we find for relevance and furthering our cross-chain objectives.

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