Why DeVol?

Deep liquidity across 95 strikes; no bid-ask spreads; fully collateralized & trustless; low trading fees; Liquidity Providers passively earn yield from market making.

DeVol provides many benefits:

• Optimized liquidity. Liquidity for a minimum of 95 granular strikes. Enter and exit trades at any time before expiration.

• No bid-ask spreads. There is no bid-ask spread. This is particularly attractive for complex (multi-leg) option strategies, where traditional market makers typically apply the bid-ask on each leg. Devol excels at spreads and complex orders in a single execution with no leg risk.

• Implement multi-leg trades in one single execution. This eliminates leg risk and allows users to trade up to 4 legs in a single order.

• Pricing and settlement fully on-chain. Real-time price transparency based on supply and demand. The price faced by liquidity takers is deterministic, which minimizes their potential for negative selection.

• Low trading fees. Create and execute multi-leg orders as a single transaction. Pay one simple fee which typically ranges from 0.01-0.03% of notional, depending on spot and implied volatility.

• Anyone can earn yield from market making. There is no order book and there are no resting orders by market making firms providing two-way quotes and earning the bid/ask spread. Instead, liquidity providers can passively earn yield as a market maker by contributing funds to a liquidity pool.

• Full collateralization with zero trading counterparty risk. For a given expiration, all positions (all strikes) are backed by funds locked on-chain in a single liquidity pool. Subject to smart contracts and the underlying blockchain operating as intended, this approach eliminates counterparty risk due to improper collateralization.

• Capital efficiency. More than 10x pre-trade capital efficiency compared to any exchange in either decentralized or traditional finance on the market today.

These benefits can only be delivered because of the DeVol Protocol, a leap forward for options trading, asset pricing, and risk management in the DeFi ecosystem. DeVol delivers these benefits through:

• Standard Risk Blocks (SRB). SRB are a new financial primitive and can be used to synthetically price and recreate any derivative payoff, including that of traditional options.

• Our liquidity provisioning structure. Collateral locked on-chain in one single liquidity pool backs all option strikes (for a given underlying and expiration).

The promise behind DeFi is that blockchain technology will unlock efficiencies by replacing centralized financial middlemen with middleware. Moving away from opaque, centralized intermediaries and towards on-chain transparency is critical to creating a fair and decentralized financial playing field. The DeVol AMM unlocks this potential for options and beyond.