Phoenix Protocol for Options¶
PPO stands for Phoenix Protocol for Options. It is one of the main products of Phoenix Finance.
PPO provides a decentralized way for writing and trading options. All the core functions of options - writing, trading, exercising, settlement, etc., occur on-chain and are managed by smart contracts. It is a permissionless, censorship-resistant, and non-custodial protocol. PPO’s goal is to make it simple to buy and exercise options in an easy, secure and decentralized way.
It creates a friendly transaction venue for option sellers to provide liquidity in the pool and earn passive rewards. The options collateral pool is working as the collective sellers of options and premiums are automatically distributed. Risks are also diversified by varieties of live options.
In addition to providing an attractive return for option writers, this model is also friendly to options buyers. They will be able to benefit from the wide variety of option types supplied by the pools and able to tailor strategies suitable to their needs. Buyers can also combine customized option terms in a variety of ways, enabling the creation of complex and powerful strategies. The model is easily extensible and is only limited by the amount of capital included in its collateral pools.
In a nutshell, PPO v1.0’s elegant mechanisms serve to benefit both liquidity pool contributors (liquidity providers or LPs) and options buyers/traders. No other DeFi options protocol currently sports our Multi-Asset Single-Pool (MASP) model, which we believe is the best way to bring together a fractured liquidity landscape for on-chain derivatives and thereby ensure the best possible trading experience for our LPs and other users.
PPO v1.0 has been audited by PeckShield.