Clutch Markets, the StonkBrokers development team, has announced STORMM, a market-making mechanism designed for stock token options. The team plans to launch Leverage Machine in September, a permissionless on-chain options exchange built on STORMM. Users can provide liquidity in stock tokens or ETH and earn LP fees, option premiums and stock token multiplier dividends. Other users can buy call or put options backed by that liquidity. Every options position is minted as a tradable NFT with details including position size, strike price, expiry and in-the-money status, and can be traded on OpenSea and other NFT marketplaces. Leverage Machine also includes Easy Mode, which lets users specify a price prediction and time horizon; the system matches the relevant strike-price liquidity and executes the trade automatically. Unlike perpetual contracts, Easy Mode options have no forced liquidation; positions expire or settle in-the-money at expiration.
Clutch Markets, the development team behind StonkBrokers, announced on X the launch of STORMM (Stock Token Optimized Regenerative Market Maker), a mechanism that will underpin Leverage Machine, a permissionless on-chain options exchange slated to go live in September.
Liquidity provision and options trading
On Leverage Machine, users can supply stock token or ETH liquidity and earn LP fees, option premiums and stock token multiplier dividends. Other users can then buy call or put options against that liquidity.
Options positions as NFTs
Every option position on the platform will be minted as a tradable NFT, storing details such as position size, strike price, expiry time and in-the-money status. These NFTs can be traded on marketplaces like OpenSea.
Easy Mode
Leverage Machine also introduces Easy Mode, which lets users simply enter a prediction for the stock token's price and time horizon. The system then automatically matches the corresponding strike-price liquidity and executes the options trade. For buyers, this mode has no forced liquidation like perpetual contracts; positions simply expire or settle in-the-money at expiry.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
