Anyone interesting in options/futures/CFD market contract?

kolinkokolinko Member Posts: 12
I'm thinking of building a smart contract that executes BTCUSD put/call options. Anyone interested in the concept?

It would an example put option would work would be:
- I want to sell a put option. Therefore I freeze a certain amount of BTC/ether within the contract.
- The person who wants to buy the option, pays the price I want to the contract
- Upon the contract expiration, the contract pays off some of the frozen BTC to the buyer, sends the rest & purchase price to the seller.


  • pmcgoohanpmcgoohan Member Posts: 12 ✭✭
    I am very interested in this, and have done quite a bit of thinking on it. I would love to see a prototypical option contract if you feel inspired.

    I'm working on some documents at the moment to try and consolidate my ideas about this subject. I'll let you and the forum know when I have them.

    Something I am playing with is the idea of bounded options where rather than a strike price, you have a strike range (from strike, to strike).

    This dispenses with the inequality between buy side and sell side, and means that limitation of risk and leverage are available to both buyers and sellers of options irrespective of the size of their bank. It means you won't need to tie up so much cash to trade.

    I also have many ideas on eliminating front running and latency arbitrage.
  • justinmaresjustinmares Member Posts: 1
    It's a great idea, but to do the USD/BTC conversion you have to look at regulation. You'll face the same regulations a bank would unless you are a security outside of the US in which case you couldn't accept US based deposits/investments w/o KYC requirements.

    I think you could possibly get around this by creating a DAO that's only function is to own $X of a basket of securities. You could then create a currency that's representative of the DAO's holdings, and use that new currency to peg BTC value.
  • pmcgoohanpmcgoohan Member Posts: 12 ✭✭
    edited September 2014
    @justinmares‌ I'm not convinced there is a regulatory problem here in the way you describe. These are derivatives of the USD BTC exchange rate traded solely in Ether. No USD or BTC will change hands within the contract itself. The ether may have been purchased on an exchange for USD, but could just as well have been mined.
  • fatzfatz Member Posts: 1
    @pmcgoohan‌ Are you making any progress on the development of options? We've been doing BTC futures and would like to explore with Ethereum based platform. I'd love to learn from you about the result.
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