Choice of option parameters

• First step is to choose the right duration for the options we are offering. This is obviously depending on the collection the options will be on.

• For the pumping collections we are looking at, very short term seems to be the most interesting, between 24 and 72 hours.

• Regarding the Strike, we will use different Strikes depending on the use cases we see as most interesting to the community

  • Low Strike vs the current floor price, 30-50% below floor price, can act as a good hedge to protect from a downturn for the Seller, and can be a good way to create yield for the Buyer

  • High Strike vs current floor price, 30-50% above floor price, is a great way for Sellers to short NFT in an almost linear way, and for Buyers to purchase discounted NFTs