Divergence Protocol
  • OVERVIEW
    • Divergence Protocol
    • Protocol Basics
      • Digital Options
      • Triangular Swaps
      • Convertible Liquidity
      • Options Specs
      • Fees
      • Glossary
      • References
  • User Guide
    • 📈Long Options
      • 🔥Open Longs
      • 🌊Close Longs
      • 👨‍🌾Exercise Options
    • 📉Short Options
      • 💧Open Shorts
      • 🔚Finalize Shorts
      • 📥Close Shorts
      • ⏰Expiry Withdrawal
    • 🍸Dive Bar
  • Technical Reference
    • Smart Contract Architecture
      • Deployment addresses
    • Core
      • Arena
      • Battle
      • Oracle
      • Utils
      • SToken
      • Interface
      • Libraries
        • DiverSqrtPriceMath
        • Position
        • Tick
        • TickMath
        • TradeMath
      • Params
      • Types
    • Periphery
      • Manager
      • Base
      • Interface
      • Quoter
      • Libraries
      • Params
      • Types
    • Audit Reports
  • DIVER Token
    • 🌝Tokenomics
      • Token Distribution
    • 🎃DIVΞR NFT Collections
  • Legal
    • Terms of Service
    • Risk Disclosure
  • MISC. INFO
    • 🔗Official Links
    • 🙌Media Kit
    • 🚢Ditanic Test Coins
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  1. User Guide

📈Long Options

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

PreviousReferencesNext🔥Open Longs

Last updated 1 year ago

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

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 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 .

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

protocol basics
close their longs
open shorts
exercised
Drawing