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Robusta

Create the protocol to buy and sell the options in Uniswap v3, using Gelato automation, NFT and Web3

Robusta

Created At

Web3Jam

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Project Description

The main aim of this protocol is to find a way to sell call options, which should allow us to create complex options strategies using Uniswap v3 LP tokens to hedge against both upward and downward moves.
A call option is bought when the investor expects the underlying value will rise before the expiry date. As the opposite of the traditional finance option which represents the right, but not the obligation, to take some action on the specified date, on this protocol the execution or not of the option depends only on the payoff at the maturity. The call can only be exercised if the spot price S is higher than K at expiration. The put, on the other hand, can only be exercised if the S < K. If the trader buys the call and sells the put at the same time, they will always have the ability to purchase the stock at expiration regardless of the spot price. This is a no-risk position because the probability to be assigned is 100%

How it's Made

The client interface of this project is made entirely in react-js. It connects with our subgraph (and uniswap v3) to retrieve in real-time the lists of options on sale (options intention). We use Gelato's pokeMe resolver to check and execute options at maturity. We plan to migrate on Skynet for the obvious cost on this platform. It is important to notice that this project was created from scratch on every part, at the user interface, at the smart contracts, and the subgraph.

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