SIREN is a distributed protocol for creating, trading, and redeeming fully-collateralized options contracts for any ERC-20 token on Ethereum.
Siren Markets (‘SIREN’) is focused on the creation of a high-quality, seamless experience for sophisticated users to purchase, trade, and redeem options without the use of a third-party mechanism or order matching to complete settlement on-chain.
Options are a powerful financial primitive, a building block from which many complex constructions can be formed and high levels of flexibility achieved. SIREN enables DeFi users to make use of options to hedge, speculate, and generate passive income streams.
SIREN achieves and occupies a unique market niche through several novel implementations. SIREN has tokenized both sides of an option contract through the process of Bilateral Tokenization, allowing for elements of an options ecosystem that can be traded as easily as a standard ERC-1155 token.
Additionally, SIREN has separated the automated market making (AMM) layer from the settlement layer, allowing for continuous modification to the design of market making, pool administration, and pricing as the trading volume and liquidity of the SIREN platform grow over time. This paradigm allows a strategy that serves SIREN in early stages of limited markets and liquidity to transform and iterate as growth takes place and the protocol exceeds such limitations.
The following documents will provide readers with a working knowledge of the fundamental mechanisms that make SIREN function. Upon completion, readers should feel empowered to engage, trade, and generally dive deep into SIREN the protocol and SIREN the community.
NOTE: This is a living document that will continue to be updated as SIREN evolves. To contribute, please visit SIREN on GitHub. Specific questions may be answered and technical guidance may also be provided from time to time in the SIREN Discord to those who are interested in building on top of the protocol.