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SIREN is a distributed protocol for creating, trading, and redeeming fully-collateralized options contracts for any ERC-20 token on Ethereum. |
Introduction
About SIREN
Siren Markets (‘SIREN’) is focused on creating a high-quality, seamless experience for sophisticated users and requires no third-party settling mechanism or order matching to complete option settlement on chain.
The developers and designers at SIREN have been working on a protocol for decentralized options trading, and we’d like to share our thoughts on it with you here. Options are a financial primitive from which one can build many different more complex financial instruments. At their core, options give a trader the choice to buy or sell an asset at a predetermined price at a known time in the future. This is useful for protecting yourself (a.k.a hedging) against possible price changes in the asset, as well as speculating on these price changes.
SIREN fills a unique market niche by catering specifically to sophisticated parties interested in holding and actively trading tokenized options contracts. Unlike any other cryptocurrency options platform, SIREN has tokenized both sides of an option contract using the ERC-1155 token standard, allowing for elements of an options ecosystem that can be traded as easily as a standard ERC-1155.
In addition to our unique tokenization model, we have also separated our automated market making (AMM) layer from the settlement layer, which allows us to continuously modify the design of our market making, pool administration, and pricing as the trading volume and liquidity of our platform grows over time. Under this paradigm, a strategy that serves SIREN in our early stage of growth with a limited number of markets and available liquidity does not need to be the same strategy that serves during future high growth periods.
NOTE: This is a living document that will continue to be updated as SIREN evolves. To contribute, please visit SIREN on GitHub. Specific questions may be answered and technical guidance may also be provided from time to time in the SIREN Telegram to those who are interested in building on top of the protocol.