First of all: the project looks super interesting! :-)
I had a couple of questions about the project on which I didn't see an answer in the whitepaper. You mention you don't need market makers. In what way will liquidity for options be provided? Will there be series with expirations? Or will they be exotic?
It's not completely clear how matchmaking is going to look. Is it through an exchange/trading screen or something else? If it is through an exchange who puts up the prices? The community?
Since a lot people have extremely limited knowledge about these products I was just wondering who and in what way dcorp would offer guidance to (potentially) interested people.
Options offer so many opportunities, but without knowledge and guidance they might not be very interesting for a lot of people.
I am genuinely interested in this kind of information before investing. Thanks a lot in advance!
Thanks for the kind words and for asking the right questions!
1) "You mention you don't need market makers. In what way will liquidity for options be provided?"
There could be market makers because as the derivatives are on the blockchain, anyone is free to use the products. The options and futures (and other derivatives in the future) will implement the ERC20 interface, allowing them to be traded on any exchange. We will provide a smart-token, as was proposed by Bancor, to provide liquidity in addition. In fact, we are on good terms with Bancor and researching in what ways we can benefit from working together on the implementation of the protocol.
2) "Will there be series with expiration? Or will they be exotic?"
The derivatives are exotic by nature. We will provide defaults that match traditional derivatives as much as possible to promote adoption.
3) "It's not completely clear how matchmaking is going to look. Is it through an exchange/trading screen or something else?
We will release a UI (exchange/trading screen) that looks like a traditional exchange/trading screen as much as possible. The UI will be opensource, enabling others to create an exchange easily, generating more transactions and thus more fees for DCORP. (Also enabling others to build on their own ideas)
4) "If it is through an exchange who puts up the prices? The community?"
The community will, this can also be a third party exchange (even a whitelabel from the UI we provide). In the case of the smart token, automatic price discovery is used to determine the value of the derivative.
5) "Since a lot people have extremely limited knowledge about these products I was just wondering who and in what way dcorp would offer guidance to (potentially) interested people."
This is the toughest question. I don’t believe we have a definitive answer that will satisfy as of right now. We aim to warn people of the potential dangers. Personally I’d like everyone to do a test before being able to participate, like you need a license before you can participate in traffic driving a car. It’s subjected to local regulation as well, we’re still talking about it. Any feedback and/or ideas from our community are more than welcome on this one!
Thanks, and sorry it took a moment to get back to you.
Mike@dcorp.it
