We are excited to announce that Auctus ($AUC) is the first on-chain options protocol to partner with Binance X, allowing traders a low-cost alternative to trading their favorite options outside of the Ethereum ecosystem.
While Ethereum has been the clear leader in the decentralized finance space, recent gas spikes have priced out many users from using these tools when they need them the most. In order to bridge the gap until L2 or ETH 2.0 become usable, BSC offers a strategic alternative allowing traders to hedge their bets when markets are volatile, which coincides with gas fees going through the roof.
In the on-chain options space, we’ve identified a few key competitors. The current leader in this space, Hegic, suffers from a number of issues Auctus aims to solve.
- Fair Option Pricing using the Black Scholes Model
Currently, Hegic is trading options at much higher premiums compared to Deribit and other leading exchanges. This is because they used a simplified pricing formula that doesn’t work well for OTM options. Also, their token model is more rent-seeking than we intend, while their pools need to also charge higher premiums to avoid the losses incurred by being non-directional. Through better pricing mechanisms, Auctus is the most competitive options protocol from a pricing perspective.
2. Fungible (Tokenized Options)
The entire point of DeFi is to create products that are interoperable and can easily add value to the larger DeFi stack. Through fungible options tokens, Auctus options are yet another lego piece to the larger DeFi ecosystem. Hegic fails at this, as their tokens are not tokenized and thereby not fungible.
3. Continuous Directional Pools
In order to maximize liquidity, Hegic took the rather lazy approach of having a singular pool that adds liquidity to both Calls and Puts. While such pools may work for less risky vehicles, such an architecture will ultimately lead to loss for pool LPs as options are very specific trading vehicles that writers generally enter with a direction and exposure profile in mind. Auctus has built directional pools, allowing option writers to choose whether or not they want to be writing calls or puts. This is an important feature as it helps protect LP assets
Auctus is now officially live on BSC with the BNB call & put options, we plan to add support for BTCB and ETH options later.
You can now buy BNB call & put options on https://bsc.auctus.org/buy/BNB_BUSD
If you want to automatically sell BNB call or put options, you can add liquidity to our option writing pools https://bsc.auctus.org/pools
If you have never used Binance Smart Chain, the first step is to connect your Metamask to BSC.
Scroll down until you find Custom RPC.
Enter in the BSC mainnet details as follows:
Once you click Save, MetaMask should automatically connect to BSC. You can check by opening the Auctus BSC platform and connecting your wallet. You can use Binance to add funds to your BSC wallet or alternatively use Binance Bridge.