Numoen officially launches!!

And we have lift off 🚀

Today at noon the Numoen Core contracts were deployed on Arbitrum and the Numoen application launched with it. Marking the first time a user can exchange options in a completely decentralized fashion and entirely on the blockchain. That’s right, options exposure on any token with no central entity controlling your funds!

Try out the app at numoen.com!

Initially we will only support ETH and DPX followed by a new token listing every other day. While the protocol can permissionlessly support any token, we have opted to list one at a time to maximize liquidity and keep the excitement going.

For users looking to earn passive yield on options trading, users can simply provide liquidity on any listed pair. The following pair will be shown under the “earn” page:

• ETH/USDC
• DPX/ETH

Numoen works very much like Uniswap where you provide liquidity to two tokens. The LP return profile is also very similar as LPs are short volatility. In other words, they accrue impermanent loss as assets are rebalanced according to the invariant and prices change against them. Unlike Uniswap however, LPs earn funding directly from option traders. Considering that the funding rate is a function of volatility not volume, it has the potential to offset impermanent loss for LPs.

The figure below illustrates the payoffs of both the liquidity provider and the option holder.

In this case traders get convexity where their upside is asymmetric to their downside. Earning more as prices move up and loosing less as they go down.

All in all, Numoen Core presents a first of its kind automated market maker that bring together two sides of a market. Unlike the constant product invariant, the Numoen Core trading function allows for peer-to-pool lending and borrowing of LP shares. Supporting the convexity seen in traditional option payoffs.

So try it out! But please be cautious when interacting with the protocol as noted in the disclaimer. While the smart contracts have been audited by Certik and protocol is non-custodial, these do not guarantee the safety of your funds. There is a $100K cap placed on the all LP deposits as well. This is done as a precautionary measure. Overtime, expect the cap limits on deposits to raise.

Factory has been deployed to 0x1B327eFf5033922B0f88FC4D56C29d7AF5a8ecdB on the following networks:

• Ethereum Goerli Testnet
• Arbitrum Mainnet:

Numoen Core is a protocol for the decentralized exchange and automated liquidity provisioning of options directly on the blockchain. The protocol has no governable parameters, no special privileges, and is non-custodial. Please understand that while the code has been audited it does not guarantee the safety of your funds. In fact, interacting with the protocol can come with substantial risks. Be aware of these risks before interacting with Numoen Core. A governance token should never be expected.

Learn more

Discord: https://discord.gg/6Dtc49Dt4W

Twitter — @numoen

Website — numoen.com