How Asteria made two roles of investments easier to participate in?
The whitepaper indicates that the Asteria Decentralized Options Trading Protocol(ADOP) supports two types of investment: market-making and speculation. Could you explain the two roles and what has Asteria made for those two types of users easier to participate in?
Option pricing and hedging is a very professional field involving complex mathematical skills and computer simulations; Asteria’s professional team would carry the complexity of those financial engineering tasks for market makers.
Professional financial teams usually trade option market makers in traditional finance. There are two main aspects involved here, one is option pricing, and the other is position hedging to ensure delivery to buyers. With adequate hedging, option sellers/market makers can obtain fixed income from buyer’s premiums.
Since the Asteria team completes the above two types of work through smart contracts and API3’s Airnode, users who want to become options market makers only need to stake their crypto assets into the asset pool. Furthermore, Asteria will dynamically allocate assets to yield farming aggregator and hedging aggregator models, plus LP mining; AMMer the pricing could obtain much higher income than other options platforms.
Speculators, or option buyers, can be more automatic and customized to set different option contract parameters through a straightforward operation. At the same time, instantly get the pricing and the full tradable size quotation provided by the system.
Asteria will continue to introduce various options to face different traders’ trading logic and objectives for speculation or hedging, which enriches the types of products.