Plume

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Tokenized stock options are now tradable on the Robinhood testnet. Buy and sell options on $AMD, $TSLA, $APPL, $AMZN, $NFLX, and $PLTR today. plumetestnet.netlify.app

8. Why did Plume bring stock options on-chain? Options have always required a broker to be traded. This means verification & approval processes, a market that closes at 4pm, and having to trust a third party with your funds. All of this changed with Plume. thanks to Robinhood’s ERC-20 stock tokens, Plume allows you to trade stock-options on-chain, permissionless from your DeFi wallet. Visit plume.trade to get started.

7. Option seller example. Every option a trader buys, someone else sold. The seller of the NVDA call in the option above already held the stock, and collected the $4 premium immediately. If NVDA stays below $190, they keep both the stock and the premium. If it rises above, their stock sells at $190 — they forfeit the upside past the strike, but the premium is still theirs.

Stock-options are among the biggest derivatives markets that exist, with over $450 Billion is notional trading volume daily. This thread breaks down what they are, how they work, and why Plume is bringing them on-chain🧵

Robinhood brought stocks on-chain. Plume brought the $1.6B/day options market with it.

To trade options in TradFi, you need to have a verified account, be online at the right time, and trust a broker with your funds. To trade options with Plume, you just connect your wallet. Visit plume.trade to get started.

Visit github.com/PlumeTrade/Plu… to view a complete list of our testnet transactions.

-> deployMarket. TSLA call + put market is deployed. 0x9cd02f40fa8b6395a7d0bc4908cd554973c78fef9c888635b33084a166c1f203 -> writeAndList. Writer deposits TSLA as collateral and lists calls. 0xac2bcd84434e37566b852eeeb7a508051d59b7a0ef35f951ddc4100afe8ea57f -> buy. Buys pays the premium and receives the options as ERC-20 tokens. 0x537783579568c0acb3c80053c5a109a09d42b4f6c2d478cb654b4342bf78c0da -> ERC-20 transfer. Buyer transfers the options to a third wallet. 0x2d6f94fdf8ccc005262d0db1fb9c870b1d75343d83f0644bc2958fb26528d9e8 -> buyToClose. Writer buys back their own option to close early. 0x5e8c19a1f696a0a1958e42d94429271a84c7834616bd6cf77d81719915c665b4 -> settle. Series settles against the earliest oracle round at/after expiry. 0x8332350c11086b447545b72266b016899921e816ba599b4d93b153b2b3f4addb -> redeem. Holder burns the options and collects intrinsic value paid in TSLA. 0xac9c5a719a550bb574c3e3fe9148811b08f01d6e3a36b657b40af86cc4d3f8a5 -> exercise. Buyer exercises before expiry at the live oracle price. 0x36e13668364cdfd3656e1bd8be1038dfa7ca74fdfe6878c16edbe525fe05c669

We believe in being thorough. That’s why every platform component is extensively run on testnet before mainnet deployment. The following transactions were a part of our most recent testnet deployment 🧵

Plume’s GitHub repository is now public. We believe in an open-source protocol where every claim is verifiable. The following components are viewable in the repository: 8 smart contracts that run the options market. 85 automated tests to ensure security and functionality of the contracts. 1 settlement bot that auto-settles expired options if nobody does it manually. 1 pricing engine that suggests fair option prices. The full suite of command-line tools to run operations & deploy test cycles. Testnet deployment records, oracle validation reports, and other docs. Visit github.com/PlumeTrade/Plu… to view the infrastructure allowing for tokenized stock-options trading.

US single-stock options have a notional trading volume of $450 Billion/day. $1.6 Billion/day is spent on premium by traders & collected by writers across platforms. Nothing exists to bring that volume on-chain, until now. Trade options straight from your DeFi wallet on plume.trade

For the first time, stock options can be traded on-chain. Buy and sell options on $SPCX, $AMZN, $NVDA, and 90+ other equities. All on-chain, from your DeFi wallet. Visit plume.trade to sign up early.