OCTION Phase 2 Launch — Writers’ Pool Goes Live

The OCTION Writers’ Pool goes live on 16th June 2021

Phase 2 Launch Completed

Following a successful Phase 1 launch of the platform, OCTION now launches Phase 2 of it’s decentralized options trading platform and in this phase, the project is expected to open up it’s Writers’ Pool for contribution by both external and internal community members. The reward for being a Writer? Well, a very handsome amount of 80% of the fees paid for every purchase of an options contract, be it Call or Put option. The process of contributing liquidity as a Writer is a hassle free one as contributors do not need to set prices for selling contracts. All prices will be aggregated and obtained through an API from one of the platform’s many data sources.

Contributing Liquidity

Contributing liquidity is really as easy as 1–2–3. The steps are shown clearly below:

Step 1: Connect your wallet to the platform (only Binance Smart Chain compatible wallets as of now)

Step 2: Click on “Writers”

Step 3: Scroll all the way down and click on “Deposit More Liquidity”

Click that big red button right there

That’s it — you are done! As of now, the contribution currency is in BUSD as traders are only allowed to purchase options contracts using BUSD. When the platform further opens up, OCTION aims to also accept BNB as a purchasing currency for the options contracts, followed by the opening up of the BNB Writers’ Pool, which would then allow Writers to contribute liquidity in BNB as well. Once you contribute liquidity, a “receipt token” will be issued. In this case, the receipt token is labelled as “oBUSD” , the value of this receipt token changes as the overall pool size grows or reduces in size, according to the financial gains that are paid out from the pool, and the fees of each options contract that is paid to the pool. An easy way to imagine it would be to imagine it as owning shares of a company, where you share in it’s profits and losses. However, it is statistically proven that sufficient volume would almost certainly lead to profits on the Writers’ Pool as number of traders who buy CALL/PUT options will increase over time, making order matching largely possible.

Risks and Rewards of Being a Writer

The key risk to being a Writer in the OCTION ecosystem is the same risk as a typical options contract seller in the traditional finance realm. You may stand to lose money, this is rather straightforward.

This chart can keep track of overall pool size growth. Chart type will be updated later on.

The rewards, however of being a Writer can be summarized into the following points:

  • Earn 80% of fees paid per transaction (aka per options contract purchased)
  • Negligible Impermanent Loss as Writers earn in BUSD
  • Zero withdrawal fees charged by the OCTION platform
  • Zero deposit fees charged by the OCTION platform
  • No registration is required
  • No middleman fees

Conclusion

With the opening up of the Writers’ Pool, the supply side of the options trading curve is fulfilled, and the team expects it’s previous partnerships with companies such as Gen Alpha to bear fruit as there is a ready pool of liquidity that can be used to underwrite options contracts. Exciting times ahead!

Thank You

As always, THANK YOU for your continued support, and stay tuned for more exciting news on OCTION!

- The OCTION Team

About OCTION

OCTION is the world’s 1st CeDeFi Options Trading Platform built on the Binance Smart Chain. Users will be able to trade options through CeDeFi, with no middlemen, no centralized organization, lower fees, more option types and zero data or market manipulation. OCTION allows for options trading through a democratic framework on the Blockchain, specifically the Binance Smart Chain.

Follow OCTION on Social Media

Website | Whitepaper | Twitter | Telegram | Discord |Medium | OCTION NFT Marketplace

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octionofficial

octionofficial

World’s 1st CeDefi Options Trading Platform built on the Binance Smart Chain