New Premia v3: at first sight
Since the release of v2, the Premia team has been hard at work making improvements to the protocol. The Premia Research Team has spent countless hours over the last nine months designing, battle-testing and reviewing the architecture required to bring on-chain options to feature and capital-efficiency parity with off-chain options venues.
What have we been thoroughly preparing for our users and the community? Read on.
First, it is a common truth for the entire Premia team that our project is fully dedicated to contributing to the global DeFi community. We want to provide our users with ample opportunities in both options trading and liquidity provisioning. So, beginning with v3:
All traders will be able to buy options, sell options or market make for specific options, at any time. We plan to deploy a mechanism enabling anyone to take either or both sides of a trade at any time, subject to liquidity. This means traders can buy an option from — or sell an option to — the pool at any time, as long as there is liquidity in the pool willing to take the other side of that trade, for that option.
All LPs can deposit to the buy-side, sell-side or both, at any time to begin making a market for the LPs’ selected option(s).
We at Premia strive to make option trading for every crypto enthusiast straightforward and friendly. Accordingly, we plan to enable LPs to set range orders or market orders on the options which they would like to trade or market-make. Range orders resemble fee-collecting limit orders, such that buyers and sellers can use them to set specific limit prices, while market makers can use them to set both a limit sell price and a limit buy price (spread) for an option.
If the market price moves above the price range of a buy-side range order, then the range order becomes a sell-side order, and vice versa.
Keep in mind, however, that both LPs and market-makers can still trade at the automated market price if they prefer this experience, similar to Premia v2. This means that sophisticated options traders can set limit orders, while traditional liquidity providers can “set-and-forget” their positions, knowing all orders on the exchange will be filled at the pool-optimized market rate.
If users prefer instead to simply earn passive income within Premia, we also plan to offer delta-hedged and similar meta-vaults to allow LPs to make deposits into simple, automated yield strategies that utilize the Premia protocol. These meta-vaults will be available for users who would like to earn potentially superior options-based returns on their capital, but choose not to trade options.
As we work diligently to make your experience within the Premia environment even more positive, we will continue to publish teasers and updates on the upcoming Premia v3 protocol. Please note the innovative technical features of the new protocol will become available once Premia v3 is live.
We are eager to answer your questions and consider any suggestions to make Premia v3 even better. Please reach out to us via social media with any questions or comments!
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