ClearDAO announced today the barrier option marketplace on Arbitrum testnet is now open for public alpha testing. This is the first proof-of-concept marketplace built using the Clear SDK. The deployment on Arbitrum testnet comes after the deployment on BSC testnet two weeks ago. As an DeFi derivative infrastructure targeting multiple blockchain ecosystems, ClearDAO is expected to also deploy on Solana and other layer 1 and 2 solutions in the near future.
ClearDAO is a decentralized derivatives factory where DeFi developers can use the Clear SDK to build bespoke derivative products and launch derivative exchanges. The marketplace on Arbitrum testnet offers options on BTC, ETH and basket of cryptos.
The option products available on ClearDAO are barrier knockout options, not the standard vanilla options available elsewhere. The marketplace has a easy-to-navigate user interface where a 4 x 4 matrix displays the options of different maturities (1 day, 3 days, 7 days, 14 days) and barrier levels (5%, 7.5%, 10% 15%). They offer different risk profiles and expected return to traders. Traders can trade both calls and puts to enhance returns and manage risks of their existing portfolios.
In traditional finance, the barrier of entry to OTC derivatives are extremely high and are often exclusive to institutional investors. DeFi in many ways aims to replicate the traditional finance but without the walls that keep the majority out. As DeFi matures and participants become more sophisticated, the need to hedge crypto portfolio risks will rise. There are currently no customizable derivatives in DeFi that tailor to the need of the buyers, and this is the problem ClearDAO is solving.
Currently in the cryptocurrency industry, the role of market makers and liquidity providers are highly accessible to most participants, including individuals and institutions. This is also true at ClearDAO, where automated market making algorithm is deployed in the marketplace to allow anyone to participate as a liquidity provider and a liquidity taker. The governance aspect of the ClearDAO ecosystem is expected in 2022. Community members will be able to collectively decide the development path of the project.
ClearDAO recently closed a $2.5 million private round fund raising. According to the project roadmap, the Clear SDK will be available in Q4 of 2021. In the same quarter the project is expected to deploy on Solana devnet. DAO governance and marketplace mainnet deployment is targeted for Q1 of 2022.
Arbitrum Testnet Demo: https://demo-arbitrum.cleardao.com/