🐋 About Moby
Options Protocol to Lead the Next DeFi Narrative
Last updated
Options Protocol to Lead the Next DeFi Narrative
Last updated
Moby, the first on-chain options protocol to receive an Arbitrum Foundation Grant prior to mainnet launch, marks a transformative milestone in DeFi. Powered by its Synchronized Liquidity Engine (SLE), Moby renders real-time accurate pricing, the narrowest spread in the market, and unparalleled liquidity.
On Moby, Liquidity Providers (LPs) allocate capital into liquidity pools, which serve as counterparties for traders. When traders open / close positions, corresponding liquidity pools automatically take opposite positions. Fees generated from traders opening or closing positions are distributed to LPs, incentivizing them to inject more liquidity and rendering a liquid trading environment for on-chain options.
Moby’s Synchronized Liquidity Engine (SLE) is pioneered in effectively tackling the prevalent issue of fragmented liquidity found in both centralized and decentralized exchanges, making Moby the most optimal trading platform for on-chain options.
Moby’s flywheel thrives on a dynamic feedback loop whereby: Significant trading volume backed by abundant liquidity and capital efficiency translates into a portion of fees distributed to LPs → As trade volume escalates on Moby, LPs earn greater returns, → Which prompts more liquidity injection → More liquidity leads to an even better trading environment → So on so forth.....
This cycle is expected to enrich Moby’s trading environment and attract a growing community of traders, cementing Moby's leadership in the on-chain options market.
Effortless Trading Environment
Buy USDC-denominated options offering ~1,000X leverage without liquidation risk
Sell options for profit with the advantage of retaining ownership of the underlying assets
Capital-Efficient Strategies
Capitalize on the volatility of underlying assets by employing higher leverage with USDC
Narrowest Spread in the Market
Most competitive spread across all DEXs and outperforming the leading CEX for 80% of the instances
24/7 Liquidity for all Positions
Abundant liquidity for all options, including ITM options, which face liquidity challenges even on CEXs
On-Chain Composability
Fungible and transferable tokenized options positions, facilitating seamless integration with other DeFi services and development of on-chain structured products
100% Settlement
Guaranteed settlement for all options positions, irrespective of their direction or size
Diversified Income Stream from Fees and Spreads
Utilize trading, swapping, and settlement fees as means of profit, emulating an exchange's revenue model
Earn profits through managing spreads effectively, adopting a market maker's approach to generating income from market liquidity provision
Real-time Automatic Hedging for LPs
Implement a real-time Dynamic Risk Premium Model aimed at maintaining LP Greeks neutrality — a model that encourages positions that mitigate LP risk by offering incentives for risk reduction and imposing costs on actions that increase risk
Maximized Capital Efficiency
Both Clearing (Netting) and Options Combo features significantly elevate daily trade volume, achieving levels more than 50X the size of Moby’s Liquidity Pool