Elaborating on option trading, investment, market and the team.
On December 7th 2022 at midday UTC, we had a joint AMA with our partner, Uplift DAO, who Incubate, Launch & Accelerate the Crypto, DeFi, Web3, GameFi, NFT, & DEX Projects was held on A twitter Space. The team answered questions covering various topics related to chances of investing in VolareFinance, option trading, etc. If you missed the event here are some of the highlights from the discussion for reference purposes.
Q1: Options trading as we know it allows investors the opportunity to profit in all market conditions and it makes sense that in the rise of interest in deeply as a whole, the interest in option trading has also grown and we’re joined here by May. she’s gonna give us a bit more of a background on VolareFinance and a bit about herself as well. May, Do you wanna tell us a bit about yourself?
May: Sure. Hey everyone this is May from VolareFinance. I joined Crypto since 2017 and then before that I used to work in finance industry in New York. And about leverage finance, it’s actually create a perfect solution for trading options in crypto based on my opinion and pretty much we provide the transparent plus and convenient decentralized. Mechanism that runs without intermediate. Option tradings, yeah.
Q2: Amazing. And can you tell us a bit more about the team behind the list, so some of the people that you’re working with to build this platform?
May: Uh, sure. We have a bunch of co-founders. Actually majority of the co-founders came from traditional finance industry, including me and Jake, which is our head of product and capital markets. He used to be a option trader, in a few major investment banks in New York as well. Prior to that, Jake spent years modeling interactive products as quant researcher. So he pretty much oversee the product and capital markets for Volare and we also have Alex who’s a senior lead. He’s a former director in Berkeley. And then he also has like more than 10 years of experience in developing pricing models for finance derivatives in fixed income equity and community products and so on.
And we also have like Kimbo, he’s our head of risk, he used to work in major banks as well. He’s responsible. He’s to be responsible for managing the market risk. And then we also have like Heidi, which is our market strategy, she’s working in Apple and we have Astro as our head of tech blockchain architecture. He’s pretty like an expert in the DeFi. He’s a technical issue assist and we also have a bunch of other people like.
We have right now about 18 people for the whole team, yeah.
Q3: Well, it sounds like you have a very experienced team. It’s quite impressive. Thank you. When Volare actually gets started. So what’s the behind the actual idea of the platform?
May: So I think first of all, like what we see in the industry is, I mean in traditional finance, we see option trading usually takes up to 50% of the total derivative markets. While in crypto, the option markets quite not completely established yet and especially major option products focused on centralized solutions and then VolareFinance is trying to provide a decentralized solution and then pretty much. The first step will be offering a trading platform for people that will be able to let people trade some basic strategies. For example, you buy and sell a couple option, it could be a standardized European or customized European options, American options. But later on top of those like basic products, we would like to provide some combo strategy to make it easier for either institutional or. Sorry, retail users to trade against the market and while we also tend to provide some index for cryptocurrencies. Structured products is also like on the pipeline, uh as well, because structured products can be pretty much like customized depending on people’s preference and demand, right. And then we try to offer some portfolio management training, structuring, some algorithm training tools, some maybe analytics tools on top of that. But I think the goal is not to build up everything based on our own team. We try to build up the whole structure and we try to open the ecosystem. To our users, so that together the whole Community will be able to explore more about the future development of all this option related products.
Q4: With the current market conditions and all that’s happening with liquidations and the bear market that we’re in, how do you think market conditions impact on options trading?
May: Option traders are like the volatility of the market because the more volatile the market is, the more, I would say the spread or the margin like the option trader will be looking for, right. And then it will definitely bring in more revenue. Think like a bear we don’t really care about, but there’s a bearish or bullish market we care about whether there’s enough volatility. Yeah.
Q5: It’s literally investors can capitalize whatever the market conditions are and that’s probably why there is such an increase in interest in options trading 2. Sorry there for some of the people that are new two options and might not be so familiar with it. Why might people want to get involved with it?
May: I think the first concern would be like how people will be able to trade during the bearish market, right? As I just mentioned like it’s probably be a problem for people who do arbitrage in the bearish market because the direction is like a uncertain and but for option products, it’s actually like we’re trading against the market, meaning like we’ll be able to offer the hedging strategy for people. So we don’t like be, we won’t be able to like uh, fear the bear market. Demand from the user’s perspective and I think with besides that the portfolio management solution is also something so far as what I see that people are looking for because not many of the users right now even they are institutional like investors, they are not like professional option traders pretty much I think they need such kind of portfolio management strategies to help them when like hash against the market to help them manage their own portfolio against the market again, right. And then three, help them like making some decisions or help them maybe try to read the market based on the like numbers. Yeah, I think those will be the major demand.
Q6: Right. So if investors wanted to manage their own options trading, they could do that. But if they wanted the support, and this applies to institutions as well, they can get portfolio management as well.
May: Volare is currently in touch with a few major investors and they all want us to help them, like, working on that part.
Q7: Great. So what were some of the main benefits of Volare Finance over other option providers?
May: I think like currently, I mean during the last cycle we see a few options products, DeFi-related products coming to market for example hygienically option. Volare finance try to develop a more transparent and trustless decentralized protocol. We try to mimic the functionality of centralized exchange. But I also compared with the decentralized ones, we also try to like work on the liquidity pool and arrow Argo market making to make sure that anyone wishes to provide liquidity interest to Volare Community and then we also try to make sure the capacity of liquidity pool is governed by the Community and it makes the profit from the bite out for spreading the automated market making process. Besides that we also have a feel like special design like based on the technology behind the layer. For example, we have localization rates, we have limited order book sale will be we also have. Trading options through uh NFTS, which we are testing right now and pricing model arbitrium and some volatility surface. Those are the major, you know I would say solutions we’re trying to bring to the market.
Q8: Could you expand on the NFT trading element? that sounds really interesting.
May: Originally speaking, I mean Volare started actually end of 2020. We feel like going through different kind of like back and forth on this NFT topic internally and our team are just originally decided really like we try to offer some options which Options can be treated out in open sea or similar markets we are this stand right and because the RCA it cancelled the original option into multiple smaller notional options with the same option parameters and we think it would be able to help lower the training requirements and boost liquidity. But like for now, like we are not trying to offer the other option products as an NFT. What we are testing right now is actually we’re trying to test you like some binary option as a team that will be able to start from something easy, that we’ll be able to grab some feedback from the users and then we try to see whether the solution is good enough or not. Yeah.
Q9: It’s great that you’re involved in the community. Amazing. So what are you ultimately trying to achieve and how do you plan to reach that end goal?
May: Uh, well, as I see like I think eventually like the community of their to be able to get heavily involved in our ecosystem development, right. We tried to let the committee members have the direct development access to our products, including our training tools, volatility analytics and even like trillion portfolio management solutions and we try to let people participate in the decision about the whole treating. Systems and then we try to let people get involved as a liquidity provider for sure, right. And then I think that’s one of the eventual goal of Volare finance. And based on that we are trying to provide a, I would say option trading desk. On top of that, we try to provide some strategies, some useful tools, some strategies even or maybe. Like some solutions which could be developed by our communities that will be act as either your asset management supporter, something like that, yeah.
Q10: Amazing. It sounds like you’ve got a lot on that road map that you’re getting now. We know you’ve got some a lot of partners. Already invested? Including DCG, we’ve got Spark Capital, we’ve got Blizzard fund. Can you talk more about some of these names that are going to be helped taking the Volare Finance further and why was Volare an interesting opportunity for them to get involved in?
May: For a lot of our investors because they are looking for some like candidates like someone who can provide some option products, right, or advanced option products. And in a decentralized way in the market, many failed to find options previously. So when they met where they feel like OK, good chance to you know get a slot and be involved in such kind of products, that’s one of the major reasons they want to make sure that they cover such topic or focus, right. And for some of the investors specifically we see they want someone to help them out this on their own portfolio management or strategy part because we are currently in talks with a few investors to provide them support like that. But like we are, we’ve been talking with a few investors in such way for a while, but we haven’t really like I would say heavily or officially start, yeah, because we feel like we want to be more mature to really provide uh official solution. And then besides that investors like Blizzard Fund which is on behalf of launch. Those are more about the ecosystem part and based on the conversation with them, I think the expectation is they want to make sure that their ecosystem product is you know good enough to let people treat against the market. So I think that’s one of the major reason we were invested back then and I, yeah, I think that that would be the major reasons.
Q11: Can you talk a bit about your token and maybe what it can be used for and why people might want to take part in the race alongside some of the big names that we’ve just mentioned?
May: I think one of the major reason that we want to welcome, you know people from communities that we would like to onboard people who could provide support either from marketing side or from the product side. So we are pretty much like we want to make sure that the investor coverage is broad enough. And then besides that, I think one of the major expectation is from the tokens perspective is like definitely like has a token recipe. Looking for financial return, right. And then as a token utility for Volare ecosystem, we’ve been like carefully designed the whole ecosystem try to make sure that there are buying pressure both which will be like a big enough to let people have incentive to buy in the layer token, right. And then by the buying pressure we are looking for get involved with the stickers liquidity providers besides all those general products. We are also looking to onboard our special token swap program that for our Volare ecosystem product, we try to make sure that Volare Token is definitely taking a share of those ecosystem products, which means as long as the ecosystem is growing for their token will be definitely like growing. Yeah, something like that.
Q12: It is great. So the people that are interested in investing in this private raise for VolareFinance, you can find the information on the uplift website which is if you just tap the link in our bio, you can find all links to the website and the community as well. And so just in terms of new innovations, So what can people expect in the future from you? what does your road map look like?
May: Sure. So speaking about the road map, we so far we have already completed the project initiation for sure, right. For example, we found out this kind of analysis and research was done like option volatility products and we found like a development of the few types of exactly option trading including margins, spread structure, production insurance based on protocol, but like in the future as I mentioned, we tried to onboard more trade option strategy portfolios to investors and then we try to offer index families, community product integration. We also try to offer financial analytics, tools development and some complex structured products combining yield, farming, mining options etc.
Q13: What do you think the future of crypto as a whole and trading looks like? And how do you see Volare Finance fitting in with the wider adoption of crypto?
May: OK, good question. So first of all, I think I’m definitely like believe that crypto market as a whole is going to is going to grow right like and then we’re expecting more, more people jumping in more, more money jumping in the whole market cap is definitely growing. And then based on such kind of assumption like uh for sure like we are looking for a more mature market situation for the whole crypto currencies and then based on that, so we are expecting option derivative products will take at least 50% of the whole derivative markets in crypto. And if that is true, but there is definitely having a huge hope to take market decent share of the market. Out on top of that and um. Yeah, I think that’s, that’s that’s the vision.
Q14: You summarized it well. When you see where do you see glory finance being in the next two years and what, ideally, would you have achieved by then?
May: I think in two years for sure where we hope we finish all those major product development based on the current design and we are board quite a few ecosystem products already. Make sure that the Volare protocol itself is able to provide people enough solutions for some basic usage. But like on top of that we are also trying to be a major team who provide asset management, portfolio management strategies, solutions in the industry and we may want to explore more opportunities in trading market in cryptocurrency. And for sure the long term vision is we could be one of the major players in general, but we definitely also have a long way to go.
About Volare Finance
Volare is a leading provider of option trading, who provides a transparent, trustworthy, and convenient decentralized mechanism without intermediaries on option trading which can imitate the serviceability of centralized exchanges.
Volare’s DeFi protocol creates a perfect solution for trading options in crypto. It provides a DeFi option protocol for European options, option combos and exotic options. It also allows investors to invest in standard or customized option strategies portfolios, and provides clients tools for hedging, speculation and yield enhancement based on its infrastructure.
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