Oddz Options v2
Oddz options v2 is a pack of new amazing features that are assured to provide users with several benefits.
Auto Exercise of Options Before Expiry
Automatic exercise is a mechanism used to protect option holders in which the Options Clearing Corporation (OCC) automatically clears an "in the money" option for the holder, often at the expiration date and time of the option.
In simple words, auto-exercise allows a trader or investor who forgot to exercise his/her “in-the-money” options for whatever reason to have their positions settled by the clearinghouse on their behalf.
Oddz options v2's auto-exercise feature follows the same traditional finance approach, in which options traders do not need to be worried about their profitable option holdings expiring due to a lack of exercise (clearing) since Oddz will auto-exercise any profitable options before expiry.
This feature is only applicable for options expiring “in the money” meaning where the call option’s strike price is above the market price at the time of expiry and the put option’s strike price is below the market price at the time of expiry.
Here’s the detailed guide for you on auto-exercise.
Secondary Market
A secondary market is a place where investors or traders may buy and sell various types of assets that they hold with other people. In simple terms, it is a place where retail investors exchange financial products such as stocks, bonds, options, or crypto.
Similarly, the secondary market of Oddz is a P2P (peer-to-peer) marketplace where traders can buy and sell options at any desired amount. It allows traders to place bids based on the asset’s strike price, quantity, and expiration date, as well as the amount they are ready to pay for that option.
The goal of this feature is to provide the option sellers an opportunity to minimize their losing positions while also allowing buyers to buy options at a lower price. Option holders can sell their losing positions for any amount they wish. On the other hand, option buyers can buy those options for a lesser amount than the actual market price.
Oddz allows sellers to minimize their loss or earn profit and allows the buyer to buy options at a lower price than the actual marketplace. It's a win-win scenario for both parties.
Here’s the detailed guide for you on the Secondary Market.
How to Buy/Sell Options Using Secondary Market?
Deviation Based Pools
The concept behind Deviation Based Pools comes from Uniswap v3, where liquidity providers define the minimum and maximum price of an asset and get a transaction fee for trades executed within that range. To understand UniSwap v3 better, we suggest referring to these guides: UniSwap v3 Guide 1 – Guide 2.
Oddz’s deviation-based pools follow a similar approach where users can provide liquidity to pools with assets having deviation. The term “Deviation” here refers to the difference between the strike and the current price of an underlying asset.
For example, if you provide liquidity to the ETH-CALL 7 Days-10% Deviation pool and the price of ETH is $3000, you will only earn if options buyers execute a trade within the strike range of $3180 ($30006%) to $3300 ($300010%).
Here’s the detailed guide for you on Deviation based pools.
Auto-Compounded Staking
Crypto staking is the process of locking up your crypto holdings in order to receive rewards or interest. We have had staking available in our options v1 where you could have staked your ODDZ, oUSD, and ODDZ-BNB pair token to earn interest. However, with option v2 we have changed things and made them better.
Stakers may now earn compound interest on their tokens on the Avalanche network without having to continually manage their deposits since we have automated the entire procedure for you. You can stake your ODDZ and oUSD tokens and earn auto compounded yields. For example, if you staked $10,000 in Oddz and the current reward is $500, you will continue to earn rewards on $10,500 ($10,000+$500) and so on.
Here’s the detailed guide for you on auto compounded staking.
How to Stake/Unstake/Claim Tokens on Oddz?
Strategies
To understand strategies in Oddz options v2, you must first understand how liquidity pools functioned in Oddz options v1. Since there are some parallels between liquidity pools in option v1 and strategies in option v2, we recommend that you first read our liquidity pools guide before attempting to comprehend strategies.
Strategies are a wrapper around liquidity pools to manage their liquidity easily and measure user strategy decisions individually without the need for external book-keeping. Although the idea is the same, the number of pools in the strategy can vary from one pool to a maximum of 10 Pools. In simple, liquidity pool (Oddz v1) was where users provided liquidity to one single pool and strategy is where users can provide liquidity to a maximum of 10 pools.
It provides option writers with the flexibility to provide liquidity to one or more pools at one go. They can also create their own strategy of pools and the proportion of the liquidity(shares) to be distributed to the pools. This way they can be option writers to various option types based on market sentiment. The profit in the strategy is aggregated from all the pools in the strategy
Here’s the detailed guide for you on Strategies.
How to Provide Liquidity Using Strategies?
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