Arrow Markets is a decentralized options protocol built on the Avalanche blockchain. We aim to democratize the returns to traditional option market makers with its novel two-pool Automated Market Maker (AMM) structure. Arrow will cut out all the middlemen in the traditional options trading pipeline, from brokers to clearing houses, and will pass the savings onto the users of the system. Arrow’s AMM utilizes sophisticated demand-based pricing coupled with a hedging engine that replicates the hedging activities of traditional market makers. The protocol will distribute the residual returns to liquidity providers who act as insurance providers. Until now, these returns were reserved for highly specialized trading firms whose individual yearly profits regularly total in the billions. User-friendly options trading tools are at the forefront of Arrow’s vision for empowering users to customize strategies for their market outlooks.
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