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A new project has been announced, EOS Options, a decentralized platform offering derivatives within decentralized finance (DeFi), directly on the EOS blockchain.
From what can be read in the whitepaper, EOS Options uses a system of decentralized oracles provided by LiquidApps, thus allowing prices to be updated several times per minute, which makes the system extremely fast compared to platforms running on Ethereum.
It is also interesting to note that trades are fully collateralized for both parties in a smart contract and therefore each order is in itself eliminating the risk of default of the counterparty in case of problems in the market. This also results in the removal of a centralized trading control body and the elimination of the need for an insurance system.
In addition to the various DeFi tools available, EOS Options also includes Virtual Exercise, which significantly reduces friction compared to traditional option exercises; and Pseudo-Leverage, which allows leverage to be simulated over a finite interval period.
The platform will pass a test phase on the Kylin testnet and then will be released on the EOS mainnet to be operational for all users; the first available products will be the European style call options.
There will also be a staking pool system dedicated to providing liquidity for users but also for rewards: in fact, 80% of the inflation generated will go to this pool and stakeholders will receive the rewards in the form of DAPP token, but also stablecoin and EOS.
Decentralized finance (DeFi) is making great progress, especially since last year, and is now expanding to several blockchains, although with some mishaps due to market crashes and hacker attacks.
For example, the decentralized stablecoin USDJ and also a platform to create synthetic assets have recently been launched on TRON, whereas on the EOS blockchain there are already millions of locked EOS.