Valorem Options - Flexible derivatives DeFi Primitive for Harmony Blockchain

Name of Project

Valorem Options V1

Project Developer

Alcibiades Capital LLC

Proposal Overview

Valorem Options V1 is a DeFi money lego enabling writing covered calls and covered puts. These will be physically settled, American or European style options. All written options are fully collateralized against an ERC-20 underlying asset and exercised with an ERC-20 exercise asset. Using a chainlink VRF random number per unique option type, settlement is fair and provably random. Options contracts are issued as fungible ERC-1155 tokens, with each token representing a contract. Option writers are additionally issued an ERC-1155 NFT representing a lot of contracts written for claiming collateral and exercise assignment. This design eliminates the need for market price oracles, and allows for permission-less writing, and gas efficient transfer, of a broad swath of traditional options.

Benefit to the Harmony Ecosystem

This powerful financial primitive will enable structured products, capital efficient money markets, token price discovery, and more, on the Harmony Blockchain.

Why on Harmony?

Harmony’s low-fee, next generation, L1 is an ideal place for new financial derivatives. Harmony’s equity-free grant program enables the development of next generation MVPs for financial derivatives.


Alcibiades Capital LLC will be working with the following partners to ensure the rapid implementation of this MVP:

  • EOI Digital - Risk Modeling, Financial Analysis, Frontend
  • Cult Method - Branding, UI, Design
  • Alcibiades Capital LLC - Smart Contracts, Backend, Security Testing
  • Harmony - Grant funding, blockchain

Proposal Ask

  • $50k


  • Branding and User Interface - $10k
  • Financial Design/Analysis - $10k
  • Smart Contract Development - $10k
  • Smart Contract Testing - $10k
  • Documentation and Roadmap - $5k
  • Testnet Deploy - $5k


  • 6-8 Weeks.

Metrics for Success

This funding will be used to build a testnet MVP of this protocol, at which point Alcibiades Capital LLC will solicit a seed round and equity investment to fund a tier 1 audit and production launch, as well as development of roadmap items such as; an off-chain order book, liquidity incentives, day 2 use cases.

Success will be a testnet launch of the protocol described in the abstract, along with a front-end and documentation for interacting with the testnet deploy.

External Links

The project is now live at

How I met Harmony

At ETH Denver, I (Alcibiades, AKA “Al”) had the pleasure of meeting Adrian Robison and other awesome folks from Harmony at various events. My interactions made it clear that Harmony would be a great partner with which to launch this new project.

Edit: this was flagged due to links, I’ve removed a bunch in comments.

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Approved as a grant via Adrian Robison for Harmony’s Project X at ETHDenver. Cheers!


Frontend, contracts are in the works now.

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Sounds great, thanks so much.

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The smart contract development and testing milestones are complete and on github.

The branding/UI and documentation/roadmap are now also complete and on the website.

Smart Contract Development and Testnet Deploy: Please post a link of the Github for testnet. Pending technical approval of @giv @lij @Jacksteroo the first $15k milestones have been met.

Please link the branding / UI and documentation / roadmap for reference. Once linked, another $15k will be released.


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My error… Testnet Deploy is not complete but Smart Contract Testing is… Total should be $35k not $30k… @lij Please let me know if I need to invoice for the extra $5k

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This sounds absolutely amazing, more defi on Harmony

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Milestone status update as requested:

  • Branding and User Interface - $10k - complete

The website is live at

There is also a react app in the works, which is outside of the scope of this grant both in terms of budget and milestone, but that we are really excited about.

  • Financial Design/Analysis - $10k - in progress

We have documentation in the works here to illustrate possible use cases for the protocol in terms of strategies which can be accomplished, and general user education on options, but it’s not done yet.

  • Smart Contract Development - $10k - complete

The code is feature complete and lives here: valorem-options-contracts/OptionSettlement.sol at master · Alcibiades-Capital/valorem-options-contracts · GitHub

  • Smart Contract Testing - $10k - complete

The tests for the smart contract live here: valorem-options-contracts/OptionSettlement.t.sol at master · Alcibiades-Capital/valorem-options-contracts · GitHub

We additionally funded an audit from RaidGuild to take place next week, as we push towards a robust and secure launch on Harmony.

  • Documentation and Roadmap - $5k - complete

Protocol documentation is ready to go, and can be found here: Smart Contracts Overview | Valorem Protocol

The roadmap as it is, is on the front page of the website.

  • Testnet Deploy - $5k - Backlog

The testnet deploy is going to take place after the RaidGuild audit next week.

We are requesting release of the smart contract, smart contract testing, branding/ui, and documentation/roadmap milestone, totaling $35k. We have more stuff in the works and look forward to the financial use case studies, testnet launch around the end of next week. After that, the React app and likely a Harmony mainnet launch around May 1.

$30k funded: Harmony Blockchain Explorer