01 Protocol Bringing Everlastings, Binary Options on Devnet
“We constantly think about this — how to make DeFi, and finance in general, more accessible to the wider audience. That’s also why we fell in love with crypto.”
Welcome to Serum Stories #10
Derivatives are key to financial services. Hedging, risk transfer, and even speculation play crucial roles in financial markets. We’re all familiar with products like vanilla options. What about binary or everlasting options? The exotics emerging across the DeFi landscape never cease to excite and inspire deeper financial innovation.
In this spirit, we are delighted to be joined this week by the team behind the 01 Protocol, who are bringing decentralized derivatives to the Solana scene by kicking off with everlastings and binary options.
They recently announced their upcoming devnet launch for Monday, September 13! Come check it out!
In the meanwhile, the 01 team is excited to share what they’ve been working on, the history of their founding, and their visions for the Serum and Solana ecosystems.
What’s up Next
- — What is 01 Protocol?
- — Why everlastings and Serum?
- — The people in mind
- — What’s in a name?
- — The founding story
- — Educating others
- — What makes it all worth it!
1. For those who are not already in the know, what is your 30 second elevator pitch for 01 Protocol? What’s your usual introduction to new investors or players?
We’re building decentralized derivatives on Solana, starting with binary options and everlasting options. Everlastings are an entirely new type of derivatives that promise to bring the power and efficiency of perps to the world of options. We’re very excited by the new types of trading strategies and composable products that it will enable. All of this in a cross-margin and collateral backend. Building on Solana also means being able to build on top of a full orderbook in a decentralized environment.
2. There’s a lot of activity in the derivatives space now on Serum and Solana!
Why did your team choose to build everlastings? How does the Serum orderbook help with this?
Everlastings are very new. It was first introduced by Dave White and SBF earlier this year. When we first read it, we quickly realized how big the idea was for the DeFi space. In the same vein that perpetuals were able to take tradfi futures and turn them into a defi-friendly asset by combining all the different expiries, everlastings will be able to consolidate all expiries, as well as strikes (using floating strikes) and also possibly call/puts with an FTX move-like contract. A big barrier to options in crypto has always been liquidity and volume fragmentation. Everlastings can solve this.
Serum’s orderbook is what makes Solana the ideal place to build such a protocol. Thanks to Serum, we’re able to fully leverage CEX-like capabilities in a fully decentralized environment. You can’t find this elsewhere in DeFi.
3. Who do you see being the main users of your platform? Has anything about the overall reception of 01 Protocol in the community surprised you?
This is a great question, and a hard one to predict. Everlastings will have so many use cases, from perp-like speculative trading to hedging and composing more complicated strategies.
We certainly expect and want to reach a wider retail audience. The beauty of everlastings is that it makes options trading magnitudes simpler for everyone, and that’s the effect we’ve observed with perps. Of course the usual market makers will be present, but the exact ratio remains to be seen…
4. What’s in a name? The name “01” gets you to the top of any alphabetized list, that’s for sure.
What was the thinking behind your unique protocol name?
Haha! For sure, the alphabetical ordering was actually a funny realization for us as well a few days into the name. We initially built out a fully-functioning binary options market in a week when we were still exploring protocol design, and so we thought that 01 suited the theme quite well because of binary digits. We’ve since stuck with it. No regrets, haha.
5. The people on your team go way back!
What’s the story behind how your team got connected and started working on 01? What were you guys up to before this?
Yeah, we all know each other very, very well, and have worked on multiple projects together since high school, fortunately or unfortunately, haha. The funny thing is we also all came from pretty academic backgrounds, from robotics, to neuro/AI, and bioengineering.
The story of us getting back together to build in Solana really started around mid-COVID, when quarantine allowed us to explore new topics, among which included crypto. We played around on Ethereum, was massively disappointed by the terrible UX of transaction costs, and turned to Solana during the summer hackathon. It’s been a love story ever since.
6. Your team is pumping out a lot of educational content, which is extremely helpful and positive for a burgeoning community.
What else should your users and followers look forward to? What do you believe are the most effective ways of promoting learning and industry knowledge across a financially-oriented ecosystem?
We constantly think about this — how to make DeFi, and finance in general, more accessible to the wider audience. That’s also why we fell in love with crypto; because of just how more efficient and intuitive (once you get to know it) everything is.
From a product perspective, we truly think that everlastings are a key stepping stone towards making options trading more accessible to more people, and we’re even more excited by composable products on top of everlastings that will further increase access to complicated strategies. From a cultural perspective, I think it’s about designing a community that is inclusive and helpful to all newcomers.
7. We love to see that kind of positive and wholesome attitude in the community!
Speaking of which, would you like to share some of your positive or most favourite experiences in these past few months at 01? What would you say makes it all ‘worth it’?
Jamming to Big Bootie Mix (if you don’t know, look it up, your life will change) at 1 AM for some intensive coding sessions. And, of course, getting to work with some of the sharpest people is always a plus.
We hope you enjoyed the interview!
We would love to continue having these kinds of conversations with all the incredible teams building on Serum and sharing them with you. Just let us know who you want to read about next!
Read Serum Roadmap 2.0
Listen to Sam Bankman-Fried’s breakdown of the Serum ecosystem