📈Long Options

Select a collateral, swap for Spear tokens as calls, or Shield tokens as puts, and chill 😎

If you are new to the Divergence Protocol, it is advised to start with the protocol basics.

Longing digital options is akin to market buying options in a traditional order book. Instead of matching with specific orders one after another, the swaps execute against a passive pool of liquidity. Liquidity providers earn fees proportional to their committed capital. The protocol's swap functionalities are long-only. Collateral tokens are swapped for options tokens, not the reverse.

Before expiry, traders can close their longs by providing the options they've bought as liquidity to a price range, similar to limit sell orders in a order book. Alternatively, to hedge a number of long calls (puts), one can buy the same amount of puts (calls), or provide collateral liquidity to open shorts.

After expiry, if the options are in-the-money, they can be exercised for 1 collateral token each. The following provide step-by-step guides about using the protocol interface to complete the above steps:

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