01 Exchange

01 team is building decentralized derivatives on Solana, starting with binary options and everlasting options. Everlastings are an entirely new type of derivatives that promise to bring the power and efficiency of perps to the world of options. We’re very excited by the new types of trading strategies and composable products that it will enable. All of this in a cross-margin and collateral backend. Building on Solana also means being able to build on top of a full orderbook in a decentralized environment.

Everlastings are very new. It was first introduced by Dave White and SBF earlier this year. team has quickly realized how big the idea was for the DeFi space. In the same vein that perpetuals were able to take trade futures and turn them into a defi-friendly asset by combining all the different expiries, everlastings will be able to consolidate all expiries, as well as strikes (using floating strikes) and also possibly call/puts with an FTX move-like contract. A big barrier to options in crypto has always been liquidity and volume fragmentation. Everlastings can solve this.

Serum’s orderbook is what makes Solana the ideal place to build such a protocol. Thanks to Serum, mainnet is able to fully leverage CEX-like capabilities in a fully decentralized environment. You can’t find this elsewhere in DeFi.

The beauty of everlastings is that it makes options trading magnitudes simpler for everyone, and that’s the effect we’ve observed with perps. Of course the usual market makers will be present, but the exact ratio remains to be seen…everlastings are a key stepping stone towards making options trading more accessible to more people.