Simplification

We know that options are not widely understood, and even those with the theoretical knowledge of option pricing may find trading in these markets daunting. In essence, option trading requires not only a correct view of the direction of the market but, equally important is the correct velocity at which market prices will move.

This is exactly why we have created the PokPok protocol, which aims to make options investments palatable and easily understood by all. In addition to pioneering the PAYG model for options, education via gamification and entertainment via fun games are at the core of what we wish to achieve.

These are the initial and simplified gamification elements in V1 of the protocol:

​HATCH: Purchasing the PAYG option is represented by minting a chicken NFT, with a percentage of the premium being funded upfront.

​FEED: Servicing the PAYG loan is represented by feeding the minted chicken NFTs. Chicken farmers may choose to stop feeding and wilfully default if the market moves in the wrong direction.

HARVEST: If an options position is ITM, farmers may choose to harvest it for USD and cash out. In doing so, farmers forgo the opportunity to generate golden eggs from their healthy chickens.

​STAKE: If an options position is ITM (represented by a well-fed healthy chicken), farmers may choose to stake their chickens to generate golden eggs. Golden eggs are tokens that, when burned, entitle owners to a time-limited share of protocol revenue.