Test your knowledge of how Premia utilizes Chainlink oracles to price options!

The solution consists of two price feeds combined with an underlying futures marketplace.

Premia simply takes Chainlink's Price Feeds and plugs them into an equation to accurately price options.

Premia applies Chainlink's Price Feeds into a clever combination of multiple price quote sources, margin, and linear pricing to allow options to converge to true market price.

How does Premia price options, and where does Chainlink come in?

Chainlink's VRF function allows Premia Blue to provide verifiable randomness for options trading.

Chainlink's Price Feeds allow Premia Blue to accurately price options for any ERC-20 with an oracle.

The Chainlink's Price Feeds allow Premia Blue to find optimal supply- and demand statistics for spot markets.

They expect prices to go up and want exposure to potential price appreciation.

They want to hedge their existing positions against a potential decline in price, or directly profit from it.

Why would a trader opt to enter a Long Put position on a platform like Premia Blue?

Trade options on DeFi tokens, utilize automated options strategies, earn yield, and even fully define their risk when providing liquidity.

Trade perpetual futures and spot markets on a wide variety of DeFi assets.

Provide liquidity to the entire volatility surface and trade American-style options on BTC and ETH.

Exam: Chainlink Recruit

Test Yourself!