🐋
Moby
  • Let’s Get Started
    • 🐋 About Moby
    • ⚡ Our Vision
    • 🤓 Your Guidebook
      • Get Setup
        • Connect Wallet
        • Trade Options
        • 0DTE Options
        • Provide Liquidity
      • Fees & Instruments
        • Fee Generation
        • Fee Distribution
        • Instruments
      • Testnet
  • How it’s Built
    • 🚀 Synchronized Liquidity Engine (SLE)
    • 🧮 Options Pricing Model
      • Mark Price
        • Futures Index
        • Implied Volatility
      • Risk Premium
        • Deriving Greeks
        • Risk Premium Calculation
        • Risk Managing Mechanism
    • 🤖 Architecture
      • Liquidity Provision Mechanism
      • Options Listing Standard
      • How to Open / Close / Settle Position
      • Synchronized Liquidity Engine (SLE)
      • Options Position Tokens
      • Tools to Maximize Capital Efficiency
    • ⚙️ Key Features
      • High Leverage & Limited Risk with No Liquidation
      • Narrow Spread with Dynamic Risk Premium
      • Guaranteed Settlement
      • Capital Efficiency Improvements with Combo Options
      • Even Higher Capital Efficiency with Clearing House
      • Abundant Liquidity for All Options
      • Composable Options for Structured Products
      • High Profitability for LPs
      • Real-Time Automatically Hedged OLP
      • Upcoming Features
    • ⛓ DeFi Options Vault
      • 🐻 Berachain DeFi Options Vault
        • 🔒 Architecture
        • 📈 Options Strategy
  • How it’s Driven
    • 🛡️ Building the Safest DeFi Protocol
      • Safety Features
      • Smart Contract Audit & Real-Time Security Monitoring
    • 🏛 Backed by Decentralized Governance
      • Governance
    • 🌐 Led by the Best Partners & Community
      • Arbitrum X Moby
      • Engagement Programs
  • Need More Info?
    • 📚 Resource Library
      • Developer Resources & Educational Contents
      • Terms & Conditions
      • Glossary
      • FAQ
  • Developers
    • Moby Traders API
      • REST API
        • General
        • Account
        • Market
    • Trade Scripts
      • Prerequisites
      • Open Positions
      • Close Positions
    • Interfaces & ABI
      • PositionManager.sol
      • SettleManager.sol
      • RewardRouterV2.sol
      • OptionsMarket.sol
    • Appendix 1: Parameters for Open/Close Options
    • Appendix 2: the Diff between optionId and optionTokenId
    • Appendix 3: Sample Moby Contract Module for Developers
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On this page
  • What is Moby?
  • How does it Work in Layman's Terms?
  • Moby Flywheel with Synchronized Liquidity Engine (SLE)
  • Key Features at a Glance
  • For Traders
  • For LPs
  1. Let’s Get Started

🐋 About Moby

Options Protocol to Lead the Next DeFi Narrative

PreviousLet’s Get StartedNext⚡ Our Vision

Last updated 1 year ago

What is Moby?

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.

How does it Work in Layman's Terms?

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 Flywheel with Synchronized Liquidity Engine (SLE)

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.

Key Features at a Glance

For Traders

Advantages
Description

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

For LPs

Advantages
Description

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