InfinityPools' advantages

At the core of InfinityPools's mechanism is an automated market maker. This enables capabilities that would otherwise be impossible or very hard to do with traditional options markets. Here are a few benefits that arise from these new capabilities:

• Permissionless market listing: any fungible asset that can be traded can have a market created for it instantaneously.

• Higher leverage:

  1. Creating options out of spot liquidity allows them to be sold on a much more granular level in terms of available strikes (theoretically unlimited). The closer an option strike is to the current market price, the higher the leverage multiple it enables on InfinityPools.

  2. The ability for traders to get a refund on unspent premium makes it possible for them to provide collateral in an incremental fashion rather than all upfront. This, in turn, also enables much higher levels of leverage on InfinityPools than would otherwise be possible.

• Reduced liquidity fragmentation:

  1. InfinityPools enables the usage of spot liquidity to create options and, as a result, derivatives with any payoff. Since spot liquidity is required for any options market, liquidity no longer needs to be fragmented across two different markets.

  2. Options being sold across a larger number of strikes also means that InfinityPools can more accurately recreate desired payoffs by combining options at different strikes.

  3. InfinityPools's exponential maturity eliminates fragmentation across expiries as all positions have the same maturity profile.