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Charm Options

Charm Options is a breakthrough automated market-maker (AMM) that creates liquid options on the blockchain by splitting an asset into different options and forming a prediction market for them, allowing options to be priced and traded. It served crypto traders and liquidity providers seeking cheaper, more liquid, and more scalable options markets. It is a previous product of Charm Finance, since superseded by newer offerings like Alpha Vaults.

Category: Derivatives

Overview

Organization

Description

Charm Options is an automated market-maker (AMM) that enables the creation of liquid options markets on the blockchain. It works by splitting an underlying asset into different options and creating a prediction market for them so they can be priced and traded, without relying on Black-Scholes or approximation formulas, allowing price discovery to occur naturally and options to be cheaper. All option markets for a given underlying and expiry are combined into a single pool, meaning trading activity in one market benefits all other markets, supporting bigger trades and greater liquidity, and allowing more options markets to be provided for a given amount of liquidity. It served traders looking to trade options as well as liquidity providers looking to earn yield by supplying capital to these combined options pools. Charm Options is listed as a 'previous product' of Charm Finance, which now focuses on other products such as Alpha Vaults.

Technology & Skills

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