Jun 6 • 22M

EP 40: Economics of POTION Explained. And How #POTION Works | POTION DeFi Options Model

We are covering a new protocol, #Potion.

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Appears in this episode

Lisa JY Tan
We talk about the design of economic systems. This could be video game simulated economy or real business world like frequent flyer points system or blockchain based token economy.
Episode details

Potion is a decentralised protocol for creating price volatility insurance contracts that run on the Ethereum Blockchain. The protocol allows users to protect against discounts on any asset: $BTC, $MKR, $LINK, $ETH, $MKR, $BAT.  

User can create their own contract with custom Number of Contract, Strike Price and Expiry Date.  

The interesting part of this protocol is that it does NOT have a token!   

Potion Protocol is currently in the development phase, with simple product structures making it accessible to everyone.  

In particular, the calculation of the option fee is based on the actual volatility of the asset, or to internalise risk management for liquidity pools.

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