Everest Options — On-Chain Options Contracts
In our last post, we announced new use cases and a goal of enhancing the DeFi Experience on Avalanche. Today we take this to the next level through Everest Options.
Everest Options is a financial tool that empowers users to predict the future price of cryptocurrencies and earn a premium if the prediction is accurate.
How The Options Work
After accessing an individual option, users can buy either CALLs (represents an upwards prediction) or PUTs (represents a downwards prediction) of an asset.
Users have a period that lasts 28% of the option’s lifespan to undertake purchases. This way, if a weekly option is created, there are two days for users to acquire both Call and Put Options, and soon after, the contract gets locked for the remainder of the period until the expiry date, when claims become available. If your prediction was correct, then the value of your options will increase based on the multiplier.
These options contracts are settled with either DAI.e or WAVAX.
Contracts settled with DAI.e:
- BTC, ETH, LINK, and WAVAX Options.
Contracts settled with WAVAX:
- C-Chain native tokens;
- Community suggested Options;
Weekly – BiWeekly – Monthly – Quarterly – 6 Months – Yearly
Potential Use Cases
Everest Options’ contracts enable greater market efficiency and opportunities for Users.
Let’s take a look at how Everest Options helped Ethan get a better yield with less risk.
As the infographic above revealed, Ethan more than tripled his APY while still maintaining a relatively low-risk approach, benefiting from Penguin Nest’ High APY and hedging himself against price volatility through Options Contracts.
Yield Strategies, Delta Neutral Strategies, Protection against Black Swans, and many more exciting use cases are now possible thanks to Everest Options.
Everest Options Revenue
Everest Options have a 2.5%-10% fee concerning the side of the option contract that lost. Initially funding development, in the near future, this will generate active income for future EVRT Stakers and Everest DAO. More information will be coming soon.
Everest Bug Bounty Campaign
Our platform is going live on the Fuji Testnet at 7 PM UTC – 8/26. Eager users and developers will test, try, and verify that everything is working correctly and be rewarded for finding exploits and contract bugs.
We categorize bug reports into Low, Medium, High, and Critical security risk vulnerabilities. Rewards are distributed proportionally to severity, a valid Proof-of-Concept, reproducibility, and more.
- Low Severity: $100-$300
- Medium Severity: $400-$700
- High Severity: $1.000-$1.999
- Critical Severity: $4.000-$10.000
About Everest DAO
Everest DAO is an innovation-driven project focused on tackling new and exciting products that range from DeFi, DAOs, NFTs, and more. Our goal is to deliver on products users want and increasing market efficiency. We provide our Dapps with fast-settlement and low fees through the Avalanche Network.
Learn more about The Avalanche Network, the fastest smart contracts platform in the blockchain industry.