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19 September 2021

How Can DeFi Farmers Use Divergence’s Options to Manage Volatility

How Can DeFi Farmers Use Divergence’s Options to Manage Volatility


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Divergence also simplifies the liquidity provision process by quoting options in collateral units of any fungible tokens.

This is because the max loss per sold binary options is pre-determined and reserved by the Divergence smart contracts.

Extensive DeFi asset trading options: Divergence provides liquidity providers with a lot more flexibility than other solutions.

They can write binary options of a select strike, expiry, and underlying with any fungible token as collateral.

Divergence’s solution is to automatically roll over options contracts with similar terms after their settlement.

These options are tokenized as Spear and Shield tokens on Divergence.

Options with a single strike allow users to get paid one collateral if the underlying price settles above or below the single price level.

Range strike options pay collateral when the underlying settles within or outside a specific price range.

One of Divergence’s main innovations is that binary options are tokenized abstractions within smart contracts.

With the mainnet launch, traders will have access to decentralized options markets for a larger number of assets, more collateral choices and an upgraded interface.

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