Oddz Price

Oddz is an On-Chain option trading platform. It consists of three types of participants:

Option buyer: To buy an option on Oddz Finance, you have to input relative information including option type, underlying asset, strike price and expiry. Buyers will be charged a protocol transaction fee and option premium. When the option contract is issued, an amount of relevant assets is locked in the liquidity pool to ensure robust settlement on the option exercises. The locked amount is calculated based on the recent volatility of the underlying asset.

Liquidity provider: Liquidity providers provide USD pegged stable coin to the liquidity pool. In the Oddz option trading process, liquidity providers act as the role of option writer- When an option is bought, liquidity providers get rewards via the option premiums collected. When the option is exercised, there is a loss to the liquidity pool which is also earmarked to the liquidity provider. Through the above process, Oddz Finance employs a unique automated market-making(AMM) mechanism to drive liquidity to the platform.

Staking contributor: Users can stake their ODDZ tokens to get a portion of settlement fees as their reward, maximizing their returns.

Besides option trading, Oddz Finance is planning to develop conditional tokens, leverage tokens and inbuilt oracles. Conditional tokens are designed for creation of high liquid prediction markets. Leverage tokens are financial derivatives for leverage trading positions in a digital asset. Inbuilt oracles can provide updated data for Oddz Finance such as implied volatility data.