EP 40: Economics of POTION Explained. And How #POTION Works | POTION DeFi Options Model
Potion is a decentralised protocol for creating price volatility insurance contracts that run on the Ethereum Blockchain. The protocol allows users to protect against discounts on any asset: $BTC, $MKR, $LINK, $ETH, $MKR, $BAT.
User can create their own contract with custom Number of Contract, Strike Price and Expiry Date.
The interesting part of this protocol is that it does NOT have a token!
Potion Protocol is currently in the development phase, with simple product structures making it accessible to everyone.
In particular, the calculation of the option fee is based on the actual volatility of the asset, or to internalise risk management for liquidity pools.