Have a seat at the table.
Aori is a member-owned decentralized options protocol with:
The current state of options trading in the cryptocurrency space is lacking in transparency, security, and capital efficiency. Traders are limited to trading options through centralized exchanges/OTC Brokers that require them to take on counterparty risk.
The second option is to trade on decentralized AMM-based exchanges where capital efficiency and pricing models are often completely overlooked. With respect to existing decentralized options markets, an AMM or automated pricing model is incredibly difficult to scale given the inaccuracy of options pricing within the smart contracts. The level of impermanent loss on existing option AMMs is likely to be an order of magnitude larger than that of spot tokens on ordinary spot DEX’s.
How does AORI solve these problems?
Aori solves the primary issue with derivatives markets in crypto by eliminating counterparty settlement risk entirely, while still maintaining capital efficiency. This is done through requiring full collateralization of all options minted through Aori with the maximum loss or gain of the option; while having separate Aori margin pools managed by a dedicated pool manager dubbed an: “Aori Prime.” These margin pools enable partial collateralization from the trader’s point of view, but are in fact fully backed for all settlement procedures.
Additionally, by having an orderbook based trading protocol, Aori enables substantially more accurate options pricing, with no potential for impermanent loss.
Aori seats are combinable NFTs that allow the owner full and complete access to the protocol with zero fees to mint or trade options, and participate in protocol governance. All users must trade through a seat, whether they own the seat or not. If they do not own the seat, then they are charged the governance set minting and trading fees. These seats are sharable as referral links and can also be combined to increase the referral fees paid back to the seat owner.
Member-owned exchanges in traditional finance markets are vastly superior for user execution than fee-based exchanges; with the primary reason being seat holders are incentivized to lower fees and increase liquidity (so as to profit from both the order flow and spreads), rather than charge fees that inherently create wider spreads and decrease trade.
*** put & call payoff charts ***