Valorem Options V1
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.
This powerful financial primitive will enable structured products, capital efficient money markets, token price discovery, and more, on the Harmony Blockchain.
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
- 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.
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.
The project is now live at https://valorem.xyz
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.