tldr; Options AMM coming soon w/ liquidity vault strategies for longing/shorting specific tokens, while earning yield from trading fees, premiums, and Premia liquidity mining program.
Premia’s most important problem to solve right now is liquidity. Traders need to be able to find the options they are looking for on the marketplace, when they want them, at prices that make sense. The problem is, it is difficult for option writers to know which options to write each week and how to price them best for sale. …
A wrap-up of what’s been accomplished thus far for Premia 💎.
A lot has taken place since the launch of the Premia marketplace two weeks ago, and even more so in the last week since the Premia token became available on Sushiswap 🍣.
Since the team’s main communication platforms are Twitter and Discord, it is possible for updates to be missed or overlooked by the community. As such, the Premia team would like to herein present a consolidation of the partnerships, additions, and upgrades that have taken place thus far.
This past week, two new projects were whitelisted on the…
Options for all
Today the Premian Republic is happy to announce the unveiling of our options marketplace on BSC!
The Premia marketplace is now available, not only on the Ethereum network with support for ERC20 tokens, but also Binance’s smart contract network, known as BSC, supporting BEP20 assets. That’s right, the Premia marketplace is available on both!
At launch, the following assets will be supported on BSC:
As you may have noticed from the supported token…
There are two things that are truly important to a protocol - the tech and the community.
Earlier today Premia initiated two buybacks to distribute rewards to those staking on the platform. How this worked was the fees collected through platform interaction were used to purchase PREMIA from the marketplace’s bonding curve, which was then distributed proportionally to individuals staking Premia.
The reward distribution can be called by any user simply by calling the convert function on the PremiaMaker contract. …
Today we are pleased to announce we have added DPI to the list of available Options!
The Defi Pulse Index is a weighted index made up of the best protocols in DeFi. UNI, AAVE, SNX, MKR, COMP, YFI, LRC, REN, BAL, KNC, & MTA all make up the index (Additional Information can be found here https://www.indexcoop.com/dpi). DPI Tokens are fully collateralized by the underlying names and the current market cap of the Index is an impressive $128mm.
We believe DPI is the one of the best, if not thee best, way to get DeFi exposure through a broad diversification of…
Every time a user Writes/Exercises/Buys/Sells an option, protocol fees are paid. The amount of protocol fees charged is dependent on if the user is using a referral, as well as the amount of xPremia that user has locked up at that time.
Users can choose to stake their Premia to receive xPremia, which represents their proportional share of Premia Protocol Fees returned in Premia (since voted in by the DAO). …
How Writing Options/Providing Liquidity to Premia works in practice!
For the purposes of this walkthrough the terms Mint & Write are synonymous.
The term Mint is utilized throughout the website.
When a User wants to generate additional income by selling Call or Put options on their tokens they have two options:
We would like to share a novel Premia feature - Flash Exercising.
Problem Statement: When taking a long position on Calls/Puts the user may not have the necessary tokens to exercise the option outright if in the money.
Example: You purchase 10 WETH put options with a strike of 1500 DAI/ETH, the price has fallen to 1200 DAI/ETH and is considered in the money.
You would like to exercise this option however all of your ETH is being utilized currently. To exercise you will need to provide 10 ETH to Receive 15000 DAI (as all premia options are physically settled).
Similar to yesterday’s article today we will focus on an example of a Put Option.
Yesterday’s Article - Please read this first to understand the assumptions here.
Bob is a YFI speculator and thinks the Price of YFI will remain stagnant the next couple of weeks (24000 per YFI Today), he would like to utilize his DAI holdings to create additional income for his portfolio as well as potentially purchase YFI at a cheaper price if the price declines.
Alice is a YFI Hedger and is unsure on the direction of YFI’s price in the next couple of weeks, she…
A Decentralized Financial Instrument Protocol