Introducing Option Factory
If you are thinking of building something that uses options as building blocks during @ethDenver, this is for you:
Option Factory: https://factory.pods.finance
The Option Factory makes deploying European or American physically settled options easy. You can choose between Kovan, Ethereum Mainnet, Polygon, Arbitrum, and BSC networks. More networks are coming!
The options have embedded functions of Mint, Unmint, Exercise, and Withdraw. This instrument does not rely on Oracles or liquidation systems.
Options help create new DeFi strategies. To achieve a more efficient portfolio, you can combine different types, maturities, and strikes.
Please note that the option instrument logic does not connect to our AMM. You can use it to sell those options in any trading venue, like on a P2P basis via Airswap.
Note that those contract have had 3 audits and have been battle tested for the past year.
Examples of uses cases:
- Structured Products or Strategies (Covered Calls, Put selling, protected capital, and more)
- New ways of Token Vesting distribution (see here if you want inspiration)
Walkthrough
There will be 3 main steps:
- Creating the option
- Adding option to the Option Manager
- Managing Option (Mint / Unmint / Withdraw / Exercise)
Let's deep dive into detail in each step:
Step 1 — Click on the Deploy option
Go to our homepage https://factory.pods.finance. On the main page, click on "Deploy option" button.
Step 2— Deploy Option
On this screen, you need to select your option parameters
- Option Classification: Put or Call
- Option Exercise Type: European, that you can only exercise during a certain window period, or, an American one that you can exercise at any time.
- Name: The option Name that you want to give, usually, we use the pattern (Underlying:Strike — Strike Price — Maturity). Example: ETH:USDC — 3000–22 May 2022
- Symbol: Symbol of the option token
- Underlying Asset: Usually the volatile asset, its the asset that the selling/buying right is referring to.
- Strike Asset: The asset that will be used to pay the strike price. Usually, we use stable coins as the strike asset, but you can also create ETH:WBTC options for example
- Strike Price: Number of units of strike asset that buys/sells 1 unit of the underlying asset. Example: ETH:USDC 3000. 3000 units of USDC gives you the right to sell or buy 1 unit of ETH.
- Expiration Date: The date of the option expiration.
- Exercise Window: How long the exercise window should last. Usually its 24 hours (86400 seconds) for European options. Leave it as 0 if the type is American.
- Is the asset an aToken (AAVE token)?: We support aTokens as collateral assets in this implementation, meaning that you can have aUSDC as collateral token, or aETH as an underlying token.
Step 3 — Getting the Option created address
After the option creation, you can copy the option address, you will use that address later in step 4.
Step 4, 5, 6 — Adding recently created option to the Option manager
Go to the third tab on the left menu, and then paste the address of the step 3 into the Option input, choose correctly the network that you have deployed, and then click on Search.
Step 7. — Managing the option
If the option address is correct, you will see the Mint, Unmint, Withdraw and Exercise tabs. There you can interact with the option that you have just created. Have in mind that selling, buying, and option pricing it's totally decoupled from this interface. You can decide where you want to trade those.
About Pods
Pods is a decentralized non-custodial options protocol. Users can create options and trade them through an Options AMM on the Ethereum Blockchain. Pods is the easiest way to hedge crypto in DeFi.
We invite you to take the first step in your new mission: start testing the app on app.pods.finance
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