Basic Concept

AOTP defines and implements the basic functionalities of plain vanilla options, while lots of real-world financial instruments would be built on synthetic options(combinations of vanilla options) and exotic options.

Asteria Finance Lab would gradually build the code base of programmable interfaces for those options: straddles, butterfly options, barrier options, compound options, chooser options, Asian options, lookback options, and so on.

The templates and API serves the foundation of Asteria’s own application development and also third-parties can take advantage of options functions for building their products.

In short, compared to centralized exchanges like Deribit and other decentralized option exchanges, Asteria aims to enrich the expressions of the market through options and construct the infrastructures of decentralized option-based coding standards.

Following are samples that traders and DeFi users could apply to their logics and applications:

Asteria Options Application Scenario

AOTP will support most option types in the traditional market, greatly enriching various users' speculative and hedging needs in the options market. Not only increasing the logical dimensions of trading but also providing market makers with better risk hedging schemes:

Applicable market conditions: from buyer's perspective.

Have strong trend expectations on the market, and aim to obtain the unlimited theoretical profit of directional judgment. The option cost is the highest, the price of the option copy is also high for hedging.

Applicable market conditions: from buyer's perspective.

Have strong trend expectations, but believe the trend would stop at a certain point, giving up the potential unlimited profit for smaller options premium.

Applicable market conditions: from buyer's perspective.

Believe the market is at a critical point, and there would be strong trend expectation in either direction. Or to say the expectation on the volatility would be huge. Buyers who choose Bottom Vertical Combination believe that high volatility will only occur after the price breaks through a certain point.

Applicable market conditions: from buyer's perspective.

Have faith in the direction of a trend while also believing the trend would not sustain after a specific price point, so they are willing to bear the risk of no benefit after such a price point for a much smaller option premium.