Coinspeaker
PancakeSwap Launches CLAMM Options Trading on Its Platform in Collaboration with Stryke

PancakeSwap, a decentralized exchange platform, has partnered with Stryke (formerly known as Dopex) to introduce a new project in the decentralized finance (DeFi) space: CLAMM Options Trading. This project will enable traders to now trade options, build on-chain options liquidity, earn premiums, and earn swap fees.

This partnership introduces American-style CLAMM options, which will debut on the Arbitrum blockchain. This solution will provide unprecedented flexibility, with expiration durations ranging from as short as one hour to as long as 24 hours. The initial markets will include ARB/USDC, WETH/USDC, and WBTC/USDC pairs, catering to a diverse range of traders and investors.

Options are derivative contracts that grant buyers the right, but not the obligation, to buy or sell an underlying asset at a specified price on or before a specific expiration date. Buyers pay a premium for this privilege, thereby limiting their potential losses to the premium paid if market conditions are unfavorable.

Option contracts can be divided into two m...