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Token Option Agreement

According to their official website, like OPYN and ACO, a primitive option comes in the form of an ERC-20 token called Prime. But Primitive has a different model from previous platforms, which have been analyzed here by having a four-token design: in addition, FinNexus foresees in the future version a collective pool model that will use FNX as the main asset backed by the backed asset, to mark both call and put options with several underlying assets. The pool will be both a security pool and a liquidity pool for the creation and transaction of options. Pool owners will receive pool sharing tokens. Risks and opportunities are shared among pool participants. In June, before COMP was listed on Uniswap, the Opium Exchange OEX-ZEPO-1*COMP, a European zero-call option on COMP with the exercise price at zero, which summarized the assets of Compound`s governance token. This type of unique derivatives offers a decentralized method to create a futures market for unlisted tokens. Either way, we know that tokens can provide solutions to some problems with traditional stock-based rewards. For example, token-based markets can be automated using smart contracts, which can reduce administrative costs and errors that sometimes occur in share-based ancillary fee allocations. In addition, they more directly incentivize employees to expand the company`s product portfolio to expand the application and value of the tokens assigned. And of course, token-based rewards can be a non-dilutive form of executive compensation.

Fifth, the hedging risk for LDCs will be difficult in the resulting decentralized option market.