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Kibo Finance

@KiboProtocol

More DeFi Options. Better Rewards. Bringing Derivatives On-Chain - Testnet live - Trading contest completed - 4000 traders !

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linkhttps://linktr.ee/kibofinance calendar_today19-08-2020 19:45:12

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A thread on option pricing
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1. Order book vs. Automated Market Makers (AMMs): Traditionally, pricing assets in centralized finance relies heavily on order books, which efficiently reflect market demand.

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Overall, pricing options in decentralized finance requires overcoming significant technical and conceptual hurdles, but ongoing innovation and the development of new solutions are driving progress in this space. learning more from our kibo Academy docs.kibo.finance/kibo/the-kibo-โ€ฆ

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This approach aims to provide a fair and decentralized mechanism for pricing options without relying on external oracles.

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However, order books pose challenges for decentralization due to storage requirements and high price adjustment rates. DeFi often relies on AMMs, which use mathematical formulas instead of order books, simplifying the process and reducing the need for extensive on-chain storage.

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