The bull market of DeFi summer of 2019 owes its birth to the first on-chain lending protocols such as Aave, Compound and Synthethix.
Those multi-billion market cap protocols paved the way so the on-chain economy can grow and flourish. Nevertheless, we postulate that the markets that these protocols create are inherently limiting due to fact that the asset they offer for lending/borrowing are just blue chip tokens such as BTC, ETH, USDC, DAI, FRAX etc.
There is of course a simple reason for that; Adding obscure token to the above mentioned list would be unnecessarily introducing the risk to the bunch due to the fact that an exploit in any of the tokens offered in the pool can drain every other token in that pool and effectively kill or severely wound the protocol itself.
Nevertheless, the crypto ecosystem is much more diverse and we ought to pursue to find the way how to include the long tail assets into more inclusive on chain economic activity of DeFi.
Uniswap revolutionized trading of almost any crypto asset out there, while before that centralized exchanges would only support trading of established blue chip tokens with their own gated access for listing, in the lending world Rari capital with its custom pool for lending and borrowing which can include any asset out there revolutionized the lending markets so no-one is left out without any gatekeeping whatsoever.
And that bring us here; we are already at the next logical step building the required decentralized infrastructure for derivative protocols where any setting and any token can be supported in a completely trustless way.
This world is a vision where any existing options protocol out there can be recreated by DeFi options DAO. We kicking off theses effort by creating a first pool ourselves which already offer the most optimal balance between pricing for traders and returns for liquidity providers.
Don’t believe us? Well, just go try it out yourself. Project is already live and can be accessed at https://defioptions.org/
