[New] Decentralised Options On Aeternity Blockchain

Application Status

Status: New
Last updated: 21.02.2025
Submitted by Jeevanjot, Singh, [email protected]
Team: Fine Exchange LTD…
Approved Budget (in h):
Used Budget (in h):
Planned Delivery: Before June 2025

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Open Source Development

Application Title

Decentralised Options Market On Aeternity

Applicant

Introduction of Jeevanjot Singh.

Value Application

Creating own Decentralised Options Platform on Aeternity will allow expansion of “Risk management on Investment” with lower transaction costs, bring faster execution times and with certainty of smart contracts. The execution of this project will allow Aeternity investors to hedge their risks on their coin and earn premiums for their involvement in Options market making.

Definition of Terms

Options market on Aeternity is creation of Call and Put options on Sophia Smart Contracts. Underlying asset will be AE. The Market price of AE will be fetched by multiple public sourced API(s) and will be fed to a different smart contract with “Oracle 2.0” on an interval. Anyone will be able to create a Call option contract and Put option contract with a web app. Options will be created by pre-depositing AEs and keeping them till the option expires or is assigned.

Status Quo

Right now the Planning for Options will be done:
→ What kind of options will be suited first. American or European Style ?
→ What kind of premium calculation to be done and how to adjust bid and ask upon theoretical fair price of options ?
→ The design of options on smart contracts.
→ Design of options market for exercising option and to trade options which is In-The-Money.

Required Work

Steps to get to the goal…
→ Design the platform
→ Implement the platform
→ Perform the testings; and
→ Make it public.

Estimate

→ Designing : 120 hours
→ Implement: 120 hours
→ Tests: 40 hours

Known Limitations

Funding.

Outlook

What happens after this project is completed?

I will try to expand the use of this project where other assets can be traded on Aeternity’s Options Market.

Publishment

VitalJeevanjot/Aeternity-Options-Market · GitHub

Maintainance

I will maintain and provide updates to the platform for at least 1 year.

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