Premia Finance: A Game Changing and Intuitive Take on Decentralized Options
First, we would like to thank you all for the amazing support that we have received in just the past week. We are already gaining rapid momentum, and we are just at the beginning of our journey!
Following some of our recent features, we would like to present to you a seemingly promising project: Premia Finance, the next generation options AMM (Automated Market Maker).
What is an Automated Market Maker, and why are they needed?
You can think of AMM as a computer program that automates the process of providing liquidity. Essentially, market making is an activity where a trader simultaneously provides liquidity to both buyers and sellers in a financial market.
Market makers are important for increasing the accessibility and liquidity of cryptocurrencies to market participants around the world.
First, let’s take a look at some of the key problems Premia intends to solve:
- Market driven option pricing
- Capital efficient pool-to-peer architecture
- Optimal liquidity pool utilization
- Risk management and instant withdrawals for liquidity providers
Then, take a look at some of its competitors:
According to DeFi Pulse,
“Premia’s design allows for multiple contracts to be written, transferred, traded, exercised, as well as other features all in a single transaction, saving on gas costs and allowing for quality of life improvements for all platform users.”
Premia Finance offers a lot of benefits for their users. One of the main features include its incentive models. Since Premia has preserved 30% of its total supply tokens for liquidity and then utilizing for trading incentive models, the project attracts liquidity providers and long-term users to its platform.
At DeFiDocs, we like to showcase projects with the most potential in this industry. As we continue developing our project, community, and partnerships, we will expand our studies to cover even more exciting Web3 protocols. Additionally, we will also be adding in courses, learn-to-earn incentives, and more. Don’t wait, contribute to a community of early adopters today.
DeFiDocs is an all-in-one platform that connects aspiring students to the world of DeFi through the application of courses, valuable project methods, and a learn-to-earn method. By providing users access to informative and educational DeFi content, we minimize the gap between previous generations of networks and Web 3.0.