Back to the list

Arrow Markets launches crypto options trading platform for non-US markets

source-logo  crypto.news 29 March 2024 14:54, UTC

Arrow Markets has launched a new platform for trading non-U.S. crypto options, aiming to simplify the trading process for users internationally.

The initiative seeks to fill a gap in the market, akin to the role Robinhood plays in the U.S. for stock options trading, but focusing on the defi sector.

Supported by Framework Ventures, Delphi Ventures, and Blizzard the Avalanche Ecosystem Fund, Arrow Markets is aiming to capture a significant portion of the defi options market.

The platform operates on Avalanche’s C-chain and introduces a Request-for-Execution (RFE) system that enhances the traditional Request-for-Quote (RFQ) approach by leveraging blockchain technology to ensure more efficient options pricing and reduce counterparty risk.

Arrow Markets’ system allows users to specify their price and slippage tolerances, enabling direct request submissions to the blockchain for matching. The process aims to eliminate unnecessary steps and optimize prices in scenarios of low liquidity.

“This means that market makers are exposed to far less stale quote risk allowing them to quote ‘tighter bid-ask spreads’ while allowing users to have control over how much ‘slippage’ they are comfortable over the reference quote. It’s a win-win for both sides,” Edward Mehrez, co-founder of Arrow Markets, told crypto.news.

You might also like: Goldman Sachs hedge fund clients show interest in crypto options trading

A distinctive feature of Arrow Markets is its user interface and experience, notably the ‘lite mode,’ which guides users through a selection of options and strategies based on their market outlook and preferences regarding the underlying asset, like Ethereum (ETH).

The project also emphasizes education and practice for traders of all experience levels, providing extensive resources and a testnet environment for risk-free trading practice.

“We are excited to back Arrow Markets to help fuel the growth of on-chain options market,” said Roy Learner, Partner at Framework Ventures.

“Arrow’s design will simplify the options trading experience, making it easy for retail and institutions alike to trade and settle any options strategy on-chain,” he added.

Read more: Robinhood and Revolut ramp up crypto services amid BTC highs