Ergo’s decentralized finance (DeFi) landscape is about to expand with the introduction of SigmaO, a pioneering platform designed to facilitate options trading on the Ergo blockchain. SigmaO aims to leverage Ergo’s unique capabilities to offer a versatile and secure environment for trading options, enhancing the financial instruments available within the Ergo ecosystem.
Options are like contracts that give you the choice to buy or sell something (like stocks or cryptocurrencies) at a fixed price before a certain date. There are two main types:
How are Options Used?
Hedging: Imagine you own Ergo tokens and are worried their value might drop. You could buy a put option, which gives you the right to sell your Ergo tokens at a fixed price, protecting you from losses if the price falls.
Speculation: Let’s say you believe the price of Ergo tokens will increase soon. You could buy a call option, allowing you to purchase Ergo tokens at a set price in the future. If the price goes up, you can buy them at the lower price stated in the option and then sell them at the higher market price, making a profit.
Generating Income: Alternatively, you could sell a call option if you don’t think Ergo’s price will rise significantly. You’ll receive money upfront for selling the option, and if the price stays below the agreed price, you keep the money without having to sell any tokens.
Learning More:
SigmaO is an innovative platform that brings the complex world of options trading to the Ergo blockchain, allowing users to engage in call and put options across a variety of Ergo EIP-4 tokens. With a focus on accessibility and security, SigmaO is poised to become a key player in Ergo’s DeFi offerings. For an insightful presentation on Sigma’O features, watch the video titled “Sigma’O | Ergo Summit - Cypherpunk Finance” by Haileypdll.
Website: sigmao.cc
About: sigmao.cc/about
Twitter: SigmaOptions
Explainer Article: SigmaO Options on Ergo Tokens
GitHub: ThierryM1212/sigmao
SigmaO Telegram chat: t.me/SigmaOpts
SigmaO plans to make options trading accessible by providing a platform where users can easily create and trade options. The platform utilizes Ergo’s smart contracts to ensure transactions are secure and efficient. Pricing mechanisms for these options are derived from Spectrum Liquidity Pools, providing transparent and fair valuation.
Join qx() as he takes you through a one shot no edits no nonsense take on how to do options trading on Ergo! This is only for buying call options, more videos to come with how to execute the call, and create calls and puts.
Sigma’O is a decentralized application (dApp) built on the Ergo blockchain. It was initially developed for the Ergohack VI event and is now available for testing at sigmao.cc.
What Sigma’O Does:
Option Contracts:
Minting Option Tokens:
When Sigma’O options are created, a reserve is ensured to allow for the option’s exercise.
Exercising Options:
Order Book Trading:
Sigma’O implements “Open sale order” and “Open buy order” contracts for trading options and tokens. These contracts are refundable at any time to the issuer and ensure fair trading.
Priced Sell Contracts:
Sigma’O also supports priced sell options for options on an underlying token with an Oracle price or Spectrum liquidity pool. This allows for real-time pricing based on market conditions.
Future Developments:
The SigmaO team is dedicated to enhancing the platform with user-friendly interfaces and off-chain bots for efficient transaction processing. This will not only improve the trading experience but also contribute to the overall liquidity and dynamism of Ergo’s DeFi ecosystem.
Gold Oracle Token Option:
GORT Token Option:
Innovative Options Experiment: