Alcor.Finance: Innovative Next-Generation Option DEX
Today we are pleased to introduce Alcor.Finance — a fully decentralized next-generation option DEX that enables on-chain buying and selling options. The current DeFi options market faces problems of low liquidity, complexity for ordinary users, and capital inefficiency.
Key User Categories
Alcor.Finance is designed with three key user categories:
- Option buyers: users who want to get the right (but not the obligation) to buy or sell a specific token at a fixed price at a fixed point in time.
- Option sellers: users interested in earning income from selling options and providing their assets as collateral.
- Liquidity providers: users who deposit liquidity to buy/sell options within the desired option price range, earning income from the price spread.
Concentrated Liquidity — Efficient liquidity provision
Unlike centralized exchanges, liquidity providers place limit orders to buy and sell options in a selected range of option prices. Unlike regular limit orders, liquidity providers choose a range of option prices they are willing to buy/sell, eliminating the need to place multiple orders. Additionally, if an option seller is unsure at what price they are willing to sell an option, they can provide liquidity in a selected range, resulting in a higher average selling price.
Minimal Price Slippages
Using concentrated liquidity and an efficient option price calculation algorithm, similar to Uniswap V3, users can trade options with minimal slippage. This means traders can obtain more favorable trading conditions, which is especially important for traders using their custom trading strategies.
Margin Trading for Option Sellers
Option sellers can use margin trading, allowing them to sell options without the need to hold 100% collateral. This makes the process of selling options more accessible and efficient, especially for experienced traders seeking to maximize profits using available capital.
Flexibility of Options Positions
One of the advantages of the Alcor.Finance is that any user, whether a buyer or a seller of options, can close their position at any time, effectively freeing themselves from obligations. This ensures flexibility and control over one’s own assets, allowing users to respond to market changes and avoid unwanted losses.
Summary
Alcor.Finance offers a range of user benefits, including margin trading for option sellers, efficient liquidity provision and minimal slippage. Our goal is to provide an innovative options protocol that will meet the needs of the crypto derivatives market.
Join the Community
Telegram: https://t.me/alcor_finance
Twitter: https://twitter.com/alcor_finance
