FinNexus - decentalized options with universal pooled liquidity

FinNexus is building a suite of open finance protocol clusters that will power hybrid marketplaces trading both decentralized and traditional financial products. The headline product to be released is a fully decentralized bitcoin (and other cryptocurrencies) options model that will live on Ethereum and other chains.

We call it a Multi-Asset Single-Pool (MASP) options model. It is a universal options protocol that enables the creation and trading of options from any type of underlying asset based on the collateral held in a single liquidity pool.


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How’s it different from Hegic? My immediate reaction is that it’s too much friction compared to products on Ethereum.

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Hey Nick, thanks for asking.
Previously, we wrote a post on the Comparison of Decentralized Options Platforms to analyze the differences among the decentralized options protocols. You may find the link here.

FinNexus is not Hegic at all, and here’s why.

The model will be online next month on Ethereum and Wanchain together.
Thanks for your time.

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The product will be on Ethereum. It’s not like Hegic. Hegic has a single pool for each position - ETH puts come from one pool of DAI; ETH calls come from one pool of ETH. That’s 2 pools. And just ETH.

FinNexus MASP will be one monolithic pool from which options exposure can be purchased - call or put, ETH or BTC - all from one single pool.

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Some upgrades are expected in the coming test of the #MASP model in FPO V1.0. Not only $FNX, but also $ETH and $USDC can be collateralized in the options liquidity pool, and used for $FNX mining.

The testnet is live both on Ethereum Rinkeby and Wanchain testnet, with a joint UI.
Welcome to give a test here.
Please find the bug bounty campaign and how to get test tokens here.

The mainnet will be live on 30th Sep, and we call the unaudited version WILDNET.
Welcome to join in the wildnet of FPO v1.0 and early contributors will be well rewarded.

A very interesting mechanism added to the testnet, similar to the Price slippage in AMM, according to the demand of options and for the security of the pool.

(1) If there are more calls than puts in FPO, calls will be more expensive;
(2) The higher the utilization of the collateral in the pool, the more expensive the options will be;

1\ MASP model creates one pool against all options. To fully mitigate risks in the pool, the options need to be as diversified as possible. Risk neutral is the goal. Therefore, a balance of puts and calls needs to be achieved. An interesting parameter added into the BS formula for pricing options. The over-purchased type of options will be more expensive, hence discouraging the buyers of this kind.

2\ The more options written, means the higher demand for options and higher potential risks for the pool. Higher demand normally means higher price. Therefore, the said parameter adjusts the option pricing according to the utilization ratio of the collateral. The more occupied for collateral in the pool, the more expensive options will be.

See how the unit price for ETH calls changes as the purchasing amount goes larger.

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Mainnet is live!!!
If you want to join, you can still apply for whitelists from the post above.

FPO v1.0 is a decentralized peer-to-pool options model, built with pooled liquidity. The beauty of pooled liquidity is that it accumulates liquidity from all market participants simultaneously and automatically. The risks and premiums are also shared equally across the entire group of liquidity providers so that no individual participant is at high risk and all participants can share in the rewards.
Either buy options here, settled with USDC, or simply jump in the pool to earn option premiums and mine FNX.