In this first episode of our series on building a decentralized options trading platform on Aptos blockchain, we’ll dive into what options are and why they’re valuable both in traditional finance and DeFi.
We explore real-world examples of how options work, from a farmer hedging wheat prices to a sneaker collector securing access to limited releases. You’ll learn the difference between call and put options, how premiums and strike prices work, and why blockchain is the perfect platform for revolutionizing options trading.
The video also includes an introduction to Aptos’s object model, which we’ll be using to build our smart contract, and a walkthrough of the key data structures we’ll need for our options platform.
Whether you’re new to options trading or an experienced developer looking to build financial applications on Aptos, this video provides the perfect foundation for understanding what we’ll be implementing in this series.
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Here’s my enthusiastic commentary on the content:
“Folks, today we’re stepping into the world of options trading, and I’m super stoked to share this project with you all! As a tech enthusiast, I’m excited to explore how we can build a decentralized options trading platform on Ethereum-compatible chains like Axio, Etherscan, or even MADEN.
Options trading is a fascinating topic, and I’m glad we’re diving into it from scratch. As we’ve seen, it’s not just about speculating on market trends but also about risk management. In our first example, Sam, the wheat farmer, bought a put option to secure his revenue, while Mr. Jordan, the sneaker store owner, purchased a call option to potentially profit from the sneaker’s skyrocketing price.
Now, you might be wondering why we’re building this platform on blockchain. Well, traditional options trading markets have some significant limitations, including accessibility, high fees, and counterparty risk. Blockchain technology can address these issues by enabling a 24/7 market, reduced counterparty risk through smart contracts, and streamlined pricing and execution. This is a game-changer, folks!
So, are you ready to join me on this journey? In the next video, we’ll be discussing the data structures and smart contracts needed to bring this decentralized options trading platform to life. Stay tuned, and let’s get building!”
