Charm Options
This repository contains an automated market-maker for options
It implements an AMM that allows an asset to be split up into tokenized payoffs such that different combinations of payoffs sum up to different call/put option payoffs. An LMSR (Hanson's market-maker) is used to provide liquidity for the tokenized payoffs.
Deployer privileges
Please note the deployer is highly privileged and has the permissions below. These are only intended to be used in an emergency situation and will be removed in future versions.
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Modify parameters of market
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Pause the contract indefinitely. This includes preventing users from buying, selling, and redeeming their options.
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Override the expiry price
Repository
The main contract that users will interact with is OptionMarket.sol, which implements the buy, sell, deposit and withdraw methods.
OptionMath.sol implements calculation logic for the LMSR cost function and for option payoffs.
OptionToken.sol is an ERC-20 token representing a long or short option position.
ChainlinkOracle.sol and UniswapOracle.sol are price oracles used to retrieve the price of the underlying asset at expiration.
OptionFactory.sol is a factory contract. createMarket is the intended way to deploy a new market.
OptionSymbol.sol is used to build the symbols and names of the option and LP tokens. It's adapted from https://github.com/opynfinance/GammaProtocol/blob/master/contracts/Otoken.sol.
Commands
Run solidity linter
npm run lint:fix
Run python formatter on unit tests
black .
Run unit tests
brownie test
Compile
brownie compile