Premia price

PREMIA

#5842

Premia is unique in that it is built on a DeFi-native options architecture.

This features market-sensitive pricing to allow for fair pricing based on supply and demand. It also uses a continuous on-chain reinforcement learning algorithm to achieve crowd-sourced pricing, so that it can hit the target market price and liquidity utilization rate. Finally, it promises capital-efficient markets that even the least liquid tokens can achieve fair market price while using the least amount of capital.

With its strong market-centric mechanisms, PREMIA tokens are distributed to stakeholders based on the size of their position and the economics of capital, driving prices toward market clearing amounts.

Compared to other peer-to-pool options protocols, Premia stands out because it prices options on market activity to ensure optimal pool utilization and offers risk management to liquidity providers. \ \ Premia’s liquidity pools are unique in that there is selectivity in the markets they overwrite, which deviates from other tokens that overwrite the entire market. The way the liquidity pools are designed allows for lower slippage when the first options are purchased from the pool. \ \ In addition, the liquidity pools are designed to strategically give out funds across the base level Put/Call pools. These smart pools are entrenched with numerous strategies and dynamic adjustments. Examples of such strategies include shorting volatility for specific assets and options arbitrage between different platforms.

Liquidity pools also feature fair accounting that takes into consideration the duration of time that users and their capital have spent in the pools, such that liquidity is arranged in a first-in first-out sequence.

Premia is listed on several cryptocurrency exchanges. Among them: Sushiswap, 1inch Exchange, Hotbit and Hoo.

Cryptocurrency newbie? You can read more about how to enter the market and how to buy BTC, PREMIA or any other token on CoinMarketCap’s very own educational portal — Alexandria.

Learn how to protect your crypto holdings and increase your crypto wealth using options here.

Learn how to hedge against impermanent loss with this guide by FinNexus.

Find out more about pooled liquidity in DeFi options in this deep dive.

What is web 3.0? Click here and find out.

Visit CoinMarketCap Alexandria to learn everything you need to know about cryptocurrency and more.