WIKI

*Paid Advertisement. Not financial advice. RugDoc is not responsible for the projects showcased here. DYOR and ape safu.

Introduction To Premia Finance

Table of Contents

When we mention trading in crypto it usually refers to spot or leveraged trading on centralized exchanges but that whole perspective is slowly changing with the introduction of decentralized options trading platforms like Premia Finance.

With the introduction of decentralized options trading platforms crypto traders and investors have more tools to hedge against risk and trade their favorite tokens more freely without the need to perform a KYC verification or create an account on a centralized platform.

What Is Premia Finance? #

Premia aims to democratize options trading with the help of blockchain technology and decentralization. Instead of having one centralized platform that benefits from trading fees Premia enables anyone to become a liquidity provider and a trader.

Since creating an autonomous options trading platform is not as easy as it may seem, Premia Finance needed to include a few innovative features such as:

  • Market driven options pricing – ensures optimal pool utilization at fair prices.
  • Liquidity sensitive returns to LP – return on liquidity is calculated based on supply/demand in all pools. Higher demand = higher returns for LPs.
  • Granular liquidity provision – liquidity providers can choose which pool they deploy their capital into.
  • Self-incentivizing initial liquidity – lower slippage at the time a pool launches as well as higher returns, thanks to the automated pool pricing mechanism.
  • Dynamic Premia token rewards – liquidity providers earn extra rewards in the form of Premia toknes based on the size of their position.

It is worth mentioning that this is a simplified overview and those that want to know more about the mechanism behind Premia Finance can find more relevant information in the documentation.

What Is The PREMIA Token? #

PREMIA is the governance token of Premia Finance and apart from governance rights it provides holders with passive income through xPremia staking. Rewards for stakers are generated through platform fees and depend on the general overall profits that the platform generates.

PREMIA has a total supply of 100M tokens and is distributed as follows:

  • 30% Cross-Chain Liquidity Mining Fund
  • 20% Development Fund
  • 10% Safety / Insurance Module
  • 10% Initial Distribution
  • 10% Founder Allocation
  • 10% Future Incentives Program
  • 5% Marketing and Education Fund
  • 5% Ecosystem Grants Fund

Staking is currently only available on Ethereum.

Benefits of Using Premia Finance #

The benefits of a decentralized options trading platform may not be evident at first glance but there are a lot of them. Platforms like Premia Finance make it very simple for traders to purchase and sell their options contracts.

Simply enter the future price you are aiming for, the expiration date and position size and the protocol will give you a price for the contract. Once bought you will easily find it in your portfolio but that’s not all.

With Premia Finance you won’t have to find a buyer for your contract if you decide to sell it before expiration. Normally you would list it on a marketplace and someone would need to purchase it but with Premia you can simply sell it back to the pool.

Right now, Premia Finance is available on Fantom, Arbitrum and Ethereum with plans to expand to Polygon, BSC and Avalanche in the future.

Conclusion #

Premia Finance can be a very useful tool for both experienced traders and complete beginners. It opens up a lot of new possibilities to crypto investors and lets them hedge against risk while providing a user-friendly protocol everyone can understand and use.

Updated on May 23, 2022
How do you feel about this article?
 

Leave a Reply

*Paid Advertisement. Not financial advice. RugDoc is not responsible for the projects showcased here. DYOR and ape safu.

Official Partners

BNBchain856
bubblemapsrdbig
Popular Links
Resources
For Farm Owners
RugDoc

Disclaimer: This is done with our best knowledge and effort, nothing can be known for certain – always DYOR and risk management. This is NOT financial advice. Use the information presented here to inform your own decisions. Referral links may be included on any outbound link.

  • What do the risk ratings mean?

Our mission here at RugDoc is to screen for hard rug code that results in 100% theft of ALL underlying funds for ALL participants.

This is the ONE part of the due diligence process that most people cannot simply do on their own as it costs thousands of dollars to hire a senior solidity developer to look over a farm for safety.

A project coin with terrible code can go up in price, and a project with good code and a good team can also go down in price.

Do NOT use our ratings to refer to your likelihood in making money if you invest in the project. They are ONLY in reference to code safety.

Everything else beyond code safety is YOUR responsibility to go do research on. We just make sure the casino you’re betting in won’t rob you before you even get to place a bet.

Our reviews for projects are organized into a few colors.

🟢 Least Risk
These projects are the least likely to hard or soft rug. Usually reserved for cornerstone projects of an ecosystem where it makes no financial sense for them to rug in any manner as they make more money just being legit.

🔵 Low Risk
These projects are usually established projects in an ecosystem that have a track record of success or have KYC’d to us or other authoritative sources in the real world. As a result, it is extremely unlikely for them to soft rug or hard rug their projects. The projects can still fail and the token price can go down, but usually more as a result of natural market forces.

⚪️ Some Risk
This is the default rating for projects with unknown teams but have code that is unlikely to have hard rug risk. Since the team is unknown and doesn’t have a track record of success, it’s entirely possible that they may try to soft rug by dumping tokens, abandoning the project, etc. Even a last minute contract swap to a malicious contract is possible. The only thing that is unlikely is a complete hard rug as long as you are 100% sure you deposit into the contract we review.

🟠 Medium Risk
Similar to Some Risk, but the underlying code itself is custom enough or complex enough that it warrants an elevated risk rating that needs deeper research. Make sure you read every point presented to make sure you’re comfortable with that before entering. Still unlikely to hard rug, but more chances of custom code behaving incorrectly and causing other issues.

🔴 High Risk
Project contains code or practices that are HIGHLY LIKELY to lead to catastrophic losses as they are right now. Make sure you read the description carefully as we will always warn what these issues are. If you see the words Hard Rug anywhere in the review, STAY FAR AWAY!

⚫️ Not Eligible
We reserve the right to not review exceedingly complex projects that would require tens of thousands of dollars of senior security analyst man hours. Typically these are projects that deal with leverage, lending, options, derivatives, and anything that is overly complex and which requires tons of peer reviews and audits from top audit companies.

Search

  • How can I request for an update to my review?

🟢 For owners who have made impactful changes and would like an update to their farm review:

1️⃣ Use #update at @RugDocChat with your description and proof of changes and it will be forwarded to our scanners.

2️⃣ This does not guarantee a change in your review.

3️⃣ Owners who have difficulty solving the issues can consider our Consultation Package - please contact @BaymaxCrypto on Telegram to discuss.