FAQ
Last updated
Last updated
Moby is an on-chain options protocol to lead the next narrative for DeFi with real-time accurate pricing, narrowest spread, abundant liquidity, and Robinhood-class UI/UX.
Based on newly pioneered SLE (Synchronized Liquidity Engine) as counterparty to traders, offering all options positions — regardless of size or direction
Accurate options pricing based on real-time market IV and Futures data
Dynamic Risk Premium Model based on LPs' real time Greeks risk (Delta, Theta, Vega) to provide narrow spread
Tokenized options positions as foundational infrastructure for integration with other DeFi services, RWA, and structured products
TradFi style infra (Prime Brokerage, Clearing House) to boost capital efficiency
Moby is on Arbitrum Devnet and will be deployed to Arbitrum One (Mainnet) by 1Q 2024.
Short-term: Expiries with 0DTE and 1DTE options / High Risk High Reward
Mid-term: Expiries with near-week and near-month options / Medium Risk Medium Reward
Long-term: Expiries with more than near-month options / Low Risk Low Reward
Note: Long-term OLP will be added soon.
Moby incurs fees from multiple sources: OLP Token Minting/Burning Fees, OLP Position Token Trading Fees, and Clearing House Fees.
If you need more detailed information, please refer to the 'FEE STRUCTURE' category in the documentation.
Yes, Moby will generate governance tokens soon.
Moby governance token holders will benefit from 30% of Moby's revenue incurred from trading fees, risk premium, and other sources.
More tokenomics will be updated along the road. Please follow our communication channels for updates:
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Options and perpetual futures, both derivatives, differ in several key ways:
No Liquidation: Options provide the choice to buy or sell an asset within a set timeframe, avoiding continuous exposure. Perpetual futures, on the other hand, may result in liquidation when position losses exceed margin, while options do not liquidated before expiration
Leverage: Both offer leverage, but options provide more precise control over risk due to their defined premium. Additionally, options often offer higher leverage ratios in far Out-The-Money (OTM) ranges
Risk Hedging: Options are frequently used for risk hedging, whereas perpetual futures can also serve this purpose. Generally, options offer a wider range of risk-hedging possibilities compared to perpetual futures
Market Neutrality: Options enable market-neutral strategies, whereas perpetual futures typically involve directional bets
Volatility Bets: Options provide specialized strategies for betting on volatility, offering traders more refined approaches
Deep & Constant Liquidity: CEX gets liquidity from Market Makers, Moby gets it from its own pioneering SLE (Synchronized Liquidity Engine). Market Makers can also hedge their positions on Moby thanks to Moby’s everlasting liquidity provided by SLE
Dynamic Spread: Moby incentivizes traders hedging Greeks risk by charging lower Risk Premium so that traders open such positions at better prices
Enhanced Composability: All positions are tokenized on-chain, which can then be either used to build structured products or sold on secondary markets
Market-synced Price: Moby calculates options prices based on real-time data from CEXs and oracle instead of relying on internal models or historical data
Risk Neutral LP: Moby constantly hedges risk by incentivizing traders on every trade that reduce the Greeks risk of OLP. If traders worsen Greeks risk, Moby charges a higher Risk Premium to protect LPs and vice versa
High Capital Efficiency: Moby utilizes a Clearing House to net opposite positions, thereby conserving capital. If traders open both short and long positions with the same expiries, OLP can offset the positions and recover collateral, enhancing capital efficiency. Even when using different expiries, Moby can limit the payoff and maximize OLP's capital efficiency
High Leverage & Credibility: Moby guarantees settlement with 100% collateralization. In the near future, Prime Brokerage will be added to ensure settlement while providing margin to traders
Options protocols typically provide a significantly higher Annual Percentage Rate (APR) compared to other derivatives protocols. This is because the fees imposed on options trading, due to the various strategies and leverage utilization, tend to be higher.
Additionally, in the case of Moby, they allocate portions of the Risk Premium paid by traders to Liquidity Providers (LPs), leading to an exceptionally high APR.
Moby does not require KYC, but needs to be connected to your MetaMask Wallet for access.
Unfortunately, Moby is unavailable for traders in the United States, the Province of Ontario in Canada, Cuba, Guam, Iran, Iraq, Japan, Panama, Syria, North Korea, and Sudan.
For Liquidity Providers, accepted assets are USDC, wBTC and wETH. Once liquidity is provided, there is a lock-up period of 7 days.
For Traders, Moby accepts USDC for all positions except for Short Call where underlying asset is required. Put positions are cash-settled (USDC), whereas Call positions are physically settled (wBTC or wETH).
We plan on expanding our scope of available services to altcoins in the future.This is the hidden content that will show up when you click on the summary.
Moby is being built by a handful of talented traders, researchers, and developers with backgrounds ranging from Web3 to CEX, IT, and Finance.
Yes, Moby sources Spot, Futures, Implied Volatility, and Risk-Free Rate for Futures from multiple CEXs as well as entities such as Block Scholes, 1inch, and Chainlink
After pulling price data from a variety of futures and options exchanges, Moby cross checks data with the oracle to check for discrepancies and thereby ensures users' trading experience
Sources of data will be further expanded in the future
Yes, there are always higher risk upon higher volatility. However, we imposed multiple measures to protect Moby OLP even at extreme market conditions
First of all, Moby protects OLPs by charging high Risk Premium to options positions that can potentially harm our liquidity during extreme market conditions
Additionally, 10% of Treasury is dedicated as Insurance Fund
Lastly, the team can hedge the Greeks risk of Moby's OLP directly or through partners
Liquidity Providers are in good hands with Moby
Yes, Moby is currently being audited by Omniscia Labs ().
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