Providing SSOV Liquidity
TL;DR
Deposit tokens to write covered calls or cash-settled puts
Receive premiums from option buyers and other incentives
Collateral may be slashed to pay settlement to buyers
What is the SSOV?
The SSOV allows liquidity providers to deposit base assets (e.g. $DPX for $DPX SSOV) for calls or stablecoins for puts to earn premiums from option traders and other rewards.
Depositors have discretion over option parameters, including:
Market: The market they are writing against
Type of option: Call or put
Strike price: Price used to determine settlement
Expiry: Duration of option (weekly or monthly)
Writers receive premiums for any options sold but may pay settlement to purchasers if their options expire ITM.
Deposits are locked for the duration of the epoch.
SSOV Specifications
Refer to SSOV walkthrough to learn how to provide liquidity via the SSOVs.
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