Charm

Basics

• Started in / Announced on:
• Mainnet release: 18-1-2021
• Based in:

• From Paradigm (19-1-2021):

"Charm is a new decentralized options protocol. It uses an innovative mechanism that can create options markets which are liquid and cheap for users to trade on."

• From the mainnet announcement (18-1-2021):

"Charm takes a unique approach of splitting tokens into tokenized payoffs and using a prediction market AMM to create liquidity for them."

Technology

• Whitepaper can be found [insert here].
• Code can be viewed [insert here].
• Built on:

• Programming language used:

Transaction Details

• Capacity (TPS):
• Latency:

Oracle Method

• From the mainnet announcement (18-1-2021):

"Price is purely determined by supply and demand and the AMM doesn’t rely on external oracles for pricing.

Chainlink oracles are used to retrieve the underlying price at expiration."

Roadmap

• Can be found [Insert link here].

Audits

• Bug bounty program can be found [insert here].
• From their mainnet announcement (18-1-2021): "Charm is unaudited"

Pros and Cons

Pros

• From their mainnet announcement (18-1-2021):

1. "Price is purely determined by supply and demand and the AMM doesn’t rely on external oracles for pricing.
2. Options can be sold any time before expiry. Unlike American options, you get back both the intrinsic and time value of the option.
3. Options can be shorted. You can sell options without buying them first. For example if you sell ETH calls, this is equivalent to holding ETH and writing ETH calls.
4. Low slippage. A key feature of the design is it allows a single liquidity pool to provide options with different strike prices. This mitigates the fragmentation problem where liquidity and volume tend to be split across many combinations of strikes and expiries.
5. Options that expire in the money are automatically exercised. You can redeem them any time after expiration. This means you don’t have to worry about forgetting to exercise your options.
6. Positions are represented as ERC-20 tokens so they can be composed easily with other protocols."

Team, Funding, Partnerships, etc.

Team

• Full team can be found [here].

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