AOTP Participants

Market-Making and Speculation

AOTP supports two types of investments: market-making and speculation. Investors who choose to be options market makers act as Option Sellers and receive profits similar to fixed income. The shared liquidity capital pool of market makers is crucial for the entire system. Therefore, AOTP guarantees a more significant margin of safety in market marking.

Unlike other AMM protocols, in which the assets in the market maker pool only provide liquidity for option buyers, Asteria AOMM aims to manage shared capital professionally. Financial engineering procedures such as dynamic hedging, risk management, and option pricing accomplish the entire system's fairness, stability, and security.

Market-making profit is related to the volatility of underlying cryptocurrency and the length of the staking period. At the same time, market makers' rights, represented by NFT tokens, could be traded via OTC channels, avoiding position rearrangement in AOTP and increasing liquidity.

AOTP provides speculators, or Option Buyers, the ability to customize options structures and parameters. They could acquire automatic quotations from market makers and, if needed, adjust the options structure according to the results. The transaction automates till one rational quotation and structure is established. AOTP provides flexible option structure designs to meet the wide-ranging needs of options investors.