Options are contracts that give the holder the right, but not the obligation, to buy or sell an underlying asset at a set price, if it moves beyond or below that price within a set timeframe.
Kibo is a multistage, decentralised ecosystem for options trading. It aims to handle pricing, collateral management and settlement in a decentralized way while bringing more liquidity to the market.
There are three stages. Kibo V0 being the current architecture to allow our users to discover our options platform, whilst being able to collect KiboTokens. Kibo V1 will bring a new architecture with a dedicated AMM whereas Kibo V2 will use our IM Oracle for collateral management on-chain.
Kibo is just beginning. It is an intuitive platform, where you can buy and sell tokenized options on ETH and wBTC, while collecting KiboTokens. In V0, we distribute KiboTokens to ensure market liquidity and pricing fairness.
Basically: it is a fun and immersive way to collect our protocol tokens while ensuring a frictionless market (meaning fair pricing and virtually unlimited liquidity for the option seller).
Kibo V0 is testnet ready, please register on the main page and let the games begin!
The end goal is to provide industry-leading technology to power options trading on the blockchain.
Kibo will develop into a technology that allows users:
- - To buy/Sell Put options on any underlying (An option underlying is a cryptocurrency, stock, index, currency, or commodity on which an option's value is based) including stocks, gold and all available cryptocurrencies
- - To buy/sell Call and Built-in strategies options on a list of underlying
- - Bespoke options tailored to each user while being handled automatically by the protocol
- - Dedicated Automated Market Maker (AMM) using our Pricing Oracle technology linked to a market equilibrium mechanism to ensure price fairness
- - Auto-hedging and risk management on-chain for the Liquidity Providers (LPs)
- - Collateral management on-chain to make it the most capital efficient for our LPs
- - LPs mechanism allows for a virtually unlimited liquidity while providing up to 10 times more rewards to the LPs compared to other protocol.
Kibo’s development plan is to build a V2 of the protocol on Ethereum before starting development on Polkadot.
Within the V2 stage, virtually any crypto, stock or commodity can be used.
Our AMM is able to price any option regardless of the underlying, maturity, and, strike selected.
KiboToken is the utility token of the ecosystem. Initially distributed to option writers (the sellers) to ensure pricing fairness, and liquidity, Kibo tokens will later be distributed to all our liquidity providers.
KBT will be used to trade in the ecosystem once Kibo V2 is released.
The options are European however they can be sold for their worldwide market price at anytime
The options within Kibo V0 are cash-settled.
Kibo V0 utilises Chainlink. Moving forward, with Kibo V1, we will utilise both Chainlink and our own Oracle.
Kibo V0 expiry will be expressed in your local time.
With Kibo V0 there is a flat 1% trading fee. This fee is expected to increase as the protocol develops and can be paid in KiboToken at a later stage