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Introduction
Learn the basic about Numoen.
Numoen allows for the creation of leverage tokens similar or ETH2xFLI or other 2x tokens that trade on centralized exchanges. This is achieved by bringing together options traders and liquidity providers.
At its simplest, Numoen is a custom AMM and a market for lending and borrowing the LP shares of this AMM.
Liquidity for options is fragmented. With many different strikes and expiries, liquidity for options in spread out.
Derivatives are complicated to trade and price. Options can be very difficult to understand and require sophisticated market makers to come in and price them. Liquidations also present a risk that traders don't like to take.
Protocols aren't truly decentralized and permissionless. Most decentralized finance protocols today are not decentralized. Reliance on privileged actors to update risk parameter, oracles or prices, or admins for upgradeability defeat the purpose of using a decentralized network like Ethereum.
Power perpetual. Numoen expands upon an innovative new derivative called the power perpetual. This derivative replicates the price^2 and has convexity or asymmetric upside that tradition perpetual don't have. Because of this, there are no strike prices or expiration dates, resulting in the entire options chain being condensed into one token.
Lending and borrowing LP shares. Numoen creates its markets by lending and borrowing LP shares. Funding is based on a jump rate model that determines interest rates from utilization. The result is that Numoen derivatives don't trade on an external market. They can be minted and burned akin to how LP tokens on Uniswap are not traded just minted and burned.
As decentralized as the Ethereum core protocol. We believe in creating a fully decentralized and autonomous financial system. We made no sacrifices on decentralization of the protocol. There are no privileged actors or external dependencies. There are no fees built in to the protocol.
Last modified 3mo ago