Premia

What is Premia?

Premia is a decentralized finance (DeFi) project focused on options trading and market-making. It offers a suite of smart contracts and tools designed to facilitate the trading and management of ERC-20 token options on the Ethereum blockchain.

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Recent Video Interview

Main points of the interview:

• Premia's recent meta-economics proposal, which includes a tokenomics revamp and options-based liquidity mining.
• Introduces secondary markets for option emissions, aimed at mitigating dilution and offering flexibility.
• Shift from a 10-year to a 4-year token emissions model.
• Fee structures, with the current 80/20 split for the options exchange and future adjustments planned based on performance data.

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The Premia Protocol

The core component of Premia is the Premia Protocol, which consists of upgradable smart contracts enabling peer-to-peer options trading. Key features include:

• Peer-to-Peer Market Making: Facilitates decentralized trading of options.
• Settlement Engine: Handles the execution and settlement of trades.

Premia Vault Depot

Built on top of the Premia Protocol, the Premia Vault Depot provides additional user functionalities:

• Automated Strategies: Allows users to participate in automated trading strategies.
• Leverage and Risk Management: Offers tools for enhanced risk management and leverage.

The Premia Interface

The Premia Interface is a web-based platform that simplifies interaction with the Premia Protocol. It is one of several ways to engage with the protocol, providing a user-friendly gateway to:

• Trading Options: Easy access to market orders and liquidity.
• Managing Strategies: Interaction with automated and manual strategies.

Premia Governance

Premia’s governance system is pivotal for decision-making and protocol management:

• Token-Based Voting: Users stake PREMIA tokens to receive vxPREMIA and participate in governance.
• Hybrid Voting Models: Combines on-chain and off-chain voting mechanisms.

Incentivization and Sustainability

Premia incentivizes participation and maintains protocol sustainability through:

• Liquidity Mining Rewards: Provides PREMIA tokens to vaults for liquidity provision.
• Governance of Emissions: On-chain management of liquidity mining rewards.
• Insurance Fund: Protects against bad debt and ensures ecosystem stability.

Project Development

Premia is launching a new rewards program on Arbitrum Season 2.0 with 200,000 ARB tokens up for grabs. Options traders can earn ARB rewards through three main activities:

• Market-Making: Earn ARB as a market maker on the Premia orderbook.
• Trading Options: Collect ARB as a taker by trading options.
• Depositing into Vaults: Receive additional ARB rewards by depositing into Premia vaults.

Rewards are distributed biweekly from August 13th to September 16th 2024. Maker rewards total 126,000 ARB and taker rewards are 84,000 ARB. For eligibility, register your address and participate in trading or market-making activities.

Projects in the Options Category

Check out other projects in the Options category:

• Ribbon Finance: offers crypto structured products, blending options, futures, and fixed income.
• HXRO: offers digital derivatives markets, trading options, and risk hedging for crypto.
• Buffer Token: an exotic options platform for volatility trading and hedging.

Premia Price Analysis

As of November 24 2024 Premia has a marketcap of $6.5M. This is {{percentagefromath}} from its all time high of $5.79. In terms of its tokenomics, there's a total supply of 100M with 45% currently outstanding. Keep in mind Premia has a fully diluted value of $14M which many investors might interpret as overvalued.

Of course, don’t trust price predictions alone, always check the Coinrotator token screener to follow the trending market.