Working as a powerful and secured protocol facilitating the creation of synthetic assets on Ethereum, UMA has announced the inclusion of BAL and UNI cryptocurrencies in the diverse list of its decentralized call option tokens. The newly supported tokens have been pooled and minted with their native currencies on their dedicated exchanges. The call option tokens do not create an obligation for the users to buy an asset rather provide them a right to purchase a crypto asset at a determined cost and time.
According to the official report, the new call options are launched with expiry on May 31, 2021, and a specified price of 90 USD for $BAL and 50 USD for $UNI tokens. The tokens will be traded as BALc90–0521 and UNIc50–0521 and shall be available for pooling on any trusted Automated Market Maker. As part of the collaboration, UMA will use the ecosystem fund pool of Balancer to offer liquidity to BAL tokens.
The UMA portal allows investors to mint their call options via a native DApp solution called MySynths.finance that has managed to earn support from crypto fans. The assets will be infused with UMA’s Expiring Multi-Party contract feature and financial assets library support too. The platform allows users to design a call option of their choice with approved collateral and strike without any governance vote rather than simply creating their customized library contract.
Call option tokens help users invest, hold, and redeem their assets at their choice and conditions prevailing in the domain. They are a surprise packet for the DeFi users as they can mint and sell their tokens quickly as and when profits appear for them. The UMA infrastructure is specifically designed to create a blockchain-powered call option token against any underlying currency with ease. DeFi communities can utilize their idle tokens to design the call option market for themselves.
Features of Call Option Tokens
- The sponsors need not manage the ratio of collateral as it remains fixed for the entire contract period at 1 underlying token for 1 call option token.
- The portal does not run liquidation bots but uses monitor bots to highlight any issue.
- The payout feature will require the sponsor to pay the due profit to the token holder rather than taking money from the holder for token transfers.
- The call option tokens can be traded at the expiry date. The expiry period shall require only one price request for settlement. The UMA channel allows super-quick settlements.