Siren Markets (‘SIREN’) is focused on the creation of a high-quality, seamless experience for sophisticated users to purchase, trade, and redeem options without the use of a third-party mechanism or order matching to complete settlement on-chain. SIREN enables DeFi users to make use of options to hedge, speculate, and generate passive income streams.
SIREN achieves and occupies a unique market niche through several novel implementations. SIREN has tokenized both sides of an option contract through the process of Bilateral Tokenization, allowing for elements of an options ecosystem that can be traded as easily as a standard ERC-1155 token.
Additionally, SIREN has separated the automated market making (AMM) layer from the settlement layer, allowing for continuous modification to the design of market making, pool administration, and pricing as the trading volume and liquidity of the SIREN platform grow over time. This paradigm allows a strategy that serves SIREN in early stages of limited markets and liquidity to transform and iterate as growth takes place and the protocol exceeds such limitations.
Token & Governance
SIREN functions at the highest level via governance tokens. SI token holders will be able to use their SI to vote on or propose new ideas that can be used to improve SIREN Markets. The holders of SI will decide the future of the project, including which options markets should be created, how design-, incentive- and LP-related decisions are made, and more. When transaction fees will have been turned on, the fees generated by the writing and execution of options contracts will accrue directly back to the governance token holders.
Before the on-chain governance voting platform is ready for SI token holders, core protocol contributors will guide critical decisions with input from the community. This mechanism of governance tokens allows those individuals who know the market best to respond directly to market demand. We think it’s important to keep governance nimble in the early days of SIREN.