Arrow Markets has introduced a new platform to make trading crypto options easier for customers worldwide.
Similar to Robinhood’s function in the US stock options trading market, the project aims to close a gap in the market by concentrating on the defi industry.
The Avalanche Ecosystem Fund, Framework Ventures, and Delphi Ventures, Arrow Markets hopes to take a sizable chunk of the defi options industry with the funding from Blizzard.
Utilizing blockchain technology, the platform, which runs on Avalanche’s C-chain, offers a Request-for-Execution (RFE) system that improves on the conventional Request-for-Quote (RFQ) method by ensuring more effective options pricing and lowering counterparty risk.
With the Arrow Markets system, customers may directly submit requests to the blockchain for matching by indicating their price and slippage tolerances. The procedure tries to cut out pointless stages and optimize prices in low-liquidity situations. Edward Mehrez, co-founder of Arrow Markets stated:
“This means that market makers are exposed to far less stale quote risk allowing them to quote ‘tighter bid-ask spreads’ while allowing users to have control over how much ‘slippage’ they are comfortable over the reference quote. It’s a win-win for both sides,”
Arrow Markets stands out for its user interface and experience, especially its “lite mode,” which walks users through a range of options and strategies based on their preferences for the underlying asset (ETH) and market perspective.
Along with offering a wealth of information and a risk-free testnet environment for traders of all skill levels, the initiative also places a strong emphasis on teaching and practice.
“We are excited to back Arrow Markets to help fuel the growth of on-chain options market,” said Roy Learner, Partner at Framework Ventures. “Arrow’s design will simplify the options trading experience, making it easy for retail and institutions alike to trade and settle any options strategy on-chain,” he added.
