Key Features
Charm provides a number of unique benefits for traders and liquidity providers (LPs):
Large selection of options
Charm offers the largest selection of options in DeFi, all with high liquidity due to Charm's capital efficient architecture.
Cheap and high quality options
Charm offers some of the cheapest and highest quality options in DeFi, made possible by its capital efficient architecture, and by a unique pricing algorithm that calculates option prices according to its supply and demand.
There are no reliance on static formulae like Black - Scholes, binomial trees, Black's approximations etc...
Quickest and easiest way to trade options
Connect metamask, and users can trade options in less than a minute. There are no registrations, endless scrolling, or messy intros.
Long and short positions possible
Users can open a long position to buy a call or put, or a short position to sell a call or put. Only the net price of each position is charged, and there is no risk of liquidation.
Charm's platform is therefore consistent with centralized exchanges like Deribit, which means it is possible to arbitrage between the platforms.
In addition, it is also possible to adopt strategies like selling covered calls.
Easier to earn high profits
Users can profit by closing their position at any time, or by waiting till settlement date. This means much higher profits are possible, because option holders can benefit from an option's time value and intrinsic value.
Returns up to %1,000 in 1 day were seen in the markets that have already already settled at Charm.
Lower slippage than other options AMMs
Much lower slippage are possible, because the available liquidity of each option market is the total liquidity of the entire options pool for that underlying.
As a result, Charm can support much larger trades sizes, which will benefit both traders and LPs.
In-the-money options are automatically exercised
If options expire in-the-money, they're automatically exercised and the payoff can be collected at any time in the future. Users don't have to worry about forgetting to exercise them and losing a potential payoff.
Options are ERC20 tokens
Option positions are represented as ERC20 tokens so it's easy to combine with other DeFi protocols.
All inclusive fee
A fee of 1% notional is charged to open a position. That is it.
There are no hidden fees; and no further charges to close a position, hold a position, or for settlement.
Better risk management
To help users understand their risks, all the key information about a purchase is explained in plain english, before a trade is placed.
There will be no nasty surprises on settlement date.
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