What are the unique advantages of Asteria?
In the decentralized options, investment area platforms such as Opyn and Hegic have also appeared. In contrast, what are the unique advantages of Asteria?
Opyn applied the spot Swap AMM solution mentioned in Question 2. It fails to solve fragmented options liquidity and imposes unavoidable impermanence losses for market makers, which is the Achilles’ heel of DeFi.
Hegic is, for now, the project with the highest TVL under the Peer-to-Pool model. Still, it does not integrate hedging into its designing and backtesting system, exposing all market maker capital to the crypto market risk with much higher volatility than the traditional financial market. Thus, moreover, the competitiveness and safety of the shared capital pool is not guaranteed. At the same time, the gap between the tens of millions of TVL and the hundreds of thousands of daily transaction volume makes Hegic’s TVL return rate, without mining, become very low, which is not compared with other high APY DeFi projects. Competitiveness amongst these products is substantial, so it will inevitably lead to the loss of funds and the drying up of liquidity.
Asteria adopts the most professional and advanced model in risk management within DeFi’s aggregation income module for option sellers. As a result, market makers will not only secure their funds but also obtain excess returns.
For option buyers, Asteria’s pricing model is more professional than Hegic. Thus, on the one hand, it can offer buyers a reasonable price, and on the other hand, it provides a solid theoretical basis for hedging.
Last but not least, Asteria is building on Metis Layer2, which will bring the low cost and high efficiency in the transactions and will bring the long-term operation advantages for Asteria to compete with other competitors.