options.cash

Try it now: https://bchoptions.cash

🎥 Presentation Video

📮 BCH and SLP Addresses

BCH Address	SLP Address
bitcoincash:qprwefsn9qnz9zxx72948n7s52lk93nfpqqq5tda9t	simpleledger:qrt9q69sypxxaypugxptaaz57l4gnq0x4yvl0ns0f2

🔍 Project Overview

options.cash aims to bring on-chain options to Bitcoin Cash through covenant contracts and price oracles. Options are a type of derivative in which the investor pays for the right to optionally buy or sell an asset at an agreed-upon price and date.

With DeFi protocols like AnyHedge gaining more adoption on BCH, our goal is to serve as a tool to manage portfolio risks and returns.

The idea is to deliver a user-friendly UX to trade options of some SLP/BCH pairs.

💡 Inspiration

Options can be really helpful to protect a portfolio, as someone interested in getting it only needs to pay a relatively small premium. On the other hand, one may want to sell the rights of an asset in order to get some cash in the present. The idea to build it on-chain comes while studying stock options, and Cash Script will help to turn this real. Ethereum already has on-chain options, like https://www.hegic.co/, but the high gas fees make it much less attractive.

❓ What it Does

Cash Script Covenants are the final pieces to have it done on-chain. With convenats only few steps will be required, they are:

options.cash diagram

1. `Option Writer` writes an intermediary contract

In this step, Option Writer creates a contract locking some asset (SLP token), and at any moment can abort and recover it.

2. `Option Buyer` pay the premium to the `Option Writer`, and a new contract is generated (in a single transaction)

3. At the expiration date, the `Option Buyer` decides to execute or not the contract

If the buyer does not execute the contract, the Option Writer will be able to restore its funds without any loss.

We decided to create an embedded wallet to make some steps easier, but it could be done completely with any wallet supporting our protocol.

🎛 How We Built It

Technologies:

Typescript
React
Styled-Components
Cash Script
slp-sdk
https://github.com/jcramer/bitcore-lib-fun

👊 Declarations

We used the experience acquired building Mint to create a great UX!

It's been a great experience to participate in this Hackathon and learn more about derivatives, options strategies, Cash Script, video editing, and more.