Options AMM

Polarity leverages on an Automated Market Maker (AMM) for its options trading platform. Not only simplifying the trading process, Polarity's OAMM also significantly improves liquidity, incentivizes participation, and supports the decentralization of finance.

Automated and Efficient Trade Execution

AMMs automate the pricing and execution of trades, ensuring that transactions are carried out efficiently and transparently. This level of automation enhances the trading experience by allowing users to open positions at any time without the need for manual order matching and use of an orderbook.

Enhanced Liquidity

AMMs address liquidity challenges by enabling Liquidity Providers (LPs) to pool their assets. This pooled liquidity is crucial for collateralizing options across various strikes and maturities. Polarity's use of its OAMM ensures that the markets remain liquid and efficient, facilitating trading across a broad spectrum of options.

Incentivized Liquidity Provision

By participating in the AMM, LPs are exposed to options selling, which yield attractive APR from trading activities. This incentivization encourages more liquidity provision, which is crucial for maintaining active markets.

Decentralization

AMMs operate without the need for traditional intermediaries, making them inherently decentralized. This characteristic allows Polarity to offer a truly decentralized options trading platform.