Understanding Perpetual Option Agreements: Antimatter guide
Chapter 1: Macro Perspective (Vision)
1. What is an option?
In short, option is a call that is executed at a specific price, based on the price of the underlying asset at a certain date in the future (call) or put (put). Options are a type of financial derivatives because they obtain value from the underlying asset (original product).
Option traders can use Call/Put to speculate or hedge positions, but they do not assume corresponding obligations.
2. What is Antimatter?
Antimatter is an on-chain tokenized perpetual option protocol. We are working mainly with underlying assets of ERC20 and BEP20 standards. After pricing (price discovery) and circulation (transactions), the prices of these tokens will follow changes over time and the valuation of the project.
For various types of tokens, Antimatter provides a license-free engine that can generate call and put options for the token.
3. What can Antimatter do?
The option itself is a contract, but the transaction is not universal and not easy to transfer. At present, most option agreements on the chain can only be executed on the agreed date, which makes the options themselves lack liquidity.
Antimatter tokenizes call or put options, and uses mathematical models to standardize the generation/redemption operations of Call token and Put token, so that two option tokens in a certain price range of a certain token can be generated on the chain. (Bullish/bearish).
You can buy call or put options as an individual holder (buyer), or generate/redeem call or put options as one of the liquidity providers; you can also trade on-chain options to gain profit or hedge your position.
4. What is the positioning of Antimatter in decentralized finance?
Usually, the tokens issued by the project go through three phases:
- token issuance/price discovery
During this phase, token issuance and price discovery functions are provided by platforms like Bounce Professional Edition and various launchpads.
2. market transaction/circulation
On this stage, permissionless spot trading market is represented by decentralized exchanges such as Uniswap.
3. time-cycle project valuation/price rise and fall three processes.
Last but not least, a license-free engine for generating call and put tokens for perpetual options of ERC20/BEP20 tokens is represented by Antimatter.
We believe that with the sudden emergence of Defi financial derivatives, Antimatter’s permission-free mechanism, standardized option token generation/redemption mathematical model, and option feed realized by token price arbitrage will inevitably become the golden standard for option agreement on the chain.
Quoting Antimatter community member’s point of view:
“If you meet with gains, you will disperse if you make ends meet; if you meet with your power, you will lose your power. The corresponding currency circle is: establish projects with CX, step on each other after pulling the market, and use the platform of celebrity organizations. After the establishment of the project, the community will be cool after the organization has delivered the goods; only the subversive original technology can be used to convene people with lofty ideals, cross the bull and bear, persevere, stand upright through wind and rain, and this kind of community is the capital of the king of the currency circle”.
Coming up: How to participate in Antimatter’s innovation agreement.