Currently, many on-chain options trading platforms use Automatic Market Makers but struggle with pricing accuracy due to the lack of effective supply and demand modeling.
Lyra is the leading decentralized options trading platform, utilizing a Black76 pricing model; however, it relies heavily on external data from oracles, which may introduce risks.
Order-book based decentralized exchanges like Aevo aim to mitigate centralized risks found in AMMs, but their implementation still bears challenges related to off-chain orderbooks.
Hashed Timelock Contracts could revolutionize options trading by allowing contracts across chains, locking assets with predetermined prices and addressing many limitations of current protocols.
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