Carmine Options AMM
Automated Market Maker enabling anyone to buy and sell options at a fair price
Taking care of risk on blockchain
Problems & Solutions
- No possibility to sell options on AMMs directly
- Low liquidity
- High spreads on limit book exchanges
- Selling options directly will be built as a core feature
- Selling and buying options will provide better price discovery and increase the usage of liquidity pool(s) to multiples of its value, in other words increase capital efficiency. Hence increasing APY and following that the liquidity.
- Price for both buy and sell will be the same before fees.
Previously worked as quant in a Chainkeepers s.r.o., company market making crypto tokens and running liquidation bots and in Quantlane s.r.o. as a team lead quant helped build the data science team. Has experience with company building from CreativeDock s.r.o. as senior data scientist and team/project lead.
Curious Python backend developer with a passion for DeFi. Dabbling in the space since 2019, I have experience with blockchain development and analysis.
Financial engineer, python developer and newly SC developer, working in crypto with focus on derivatives and all things quant. Previously worked at ChainKeepers.
Blockchain enthusiast and DeFi believer. Has experience with building and managing comunities. Has an engineering background and has also gained experience in HR management.
Youtuber, business developer, community moderator and overall crypto enthusiast.
Frequently Asked Questions
Selling will work almost the same as buying options with two differences. First user will receive premium instead of paying it. Second the user selling the option will have to lock in tokens covering the option.
Since users can both sell and buy options from/to the given pool, the AMM can match options between buyers and sellers. With a limitation that the absolute difference between bought and sold options will be lower than the liquidity in the pool to ensure coverage of all options.
Buying and selling options will be based on the same market price and there will be fees charged on top of it. This sets the spread to approximately twice the size of the fees.
It will be possible to use liquidity pool above 100% of its value which will increase the APY which in turn will drive in more liquidity to the pool.