Good to know: Call options require 1 unit of underlying asset to mint a call option. Put options require strike price amount of USDC to mint a put option.
Basic introduction to minting options using Polynomial
After minting options users will get Polynomial Option tokens (ERC20). Users can choose which option protocol they want to mint options with. This allows users to use various underlying features of various option protocols (eg: Non liquidatable positions in UMA).
If an option protocol has options at a cheaper price than others, users can mint options using that protocol to arbitrage the price differences.
For call options to mint 1 option user has to deposit 1 unit of the underlying asset. For eg: 1 ETH is required to mint 1 option.
For put options to mint 1 option user has to deposit stable coin (USDC) worth of strike price. For eg: For ETH 3000 Put user has to deposit 3000 USDC to get 1 option.
Check out how it works under the hood 👇
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