2. Introduction to Premia Blue

Premia Blue is the first non-custodial options settlement layer & exchange with fully customizable options parameters and risk exposure.

From casual traders to institutional capital, the product lineup of Premia Blue caters to everyone. Here's a list of the main features users can access permissionlessly on Arbitrum One:

• Fully customizable European-style options trading
• Concentrated liquidity & range orders
• Permissionless options liquidity pools for any ERC-20 with a valid price oracle
• Automated options vaults for passive yield strategies

Starting with options trading, let's do a brief overview of everything that Premia Blue has to offer.

Premia Blue provides users with price quotes from multiple different sources: the RFQ-network, strategy vaults that underwrite options, and the concentrated liquidity pools.

When buying an option, you first select which asset you want to buy — let’s say you want to buy a Call option for WBTC.

You select WBTC, the strike price, and the expiration date. Premia Blue will show you a list of quotes from all the different WBTC pools, with the best price listed first.

The Option-Chain is a more comprehensive way of visualizing the same options you’d be displayed above.

Instead of having to select your strike price and expiration, you can just select your asset, and in one simple table view you’re able to see strike prices and click through various expiration dates.

This view is perfect for gauging the price differences across options and finding the right option for your strategy.

Concentrated liquidity and range orders are the core of Premia Blue for liquidity providers.

Concentrated liquidity is a feature that allows liquidity providers (LPs) to set a specific range of premiums they want to provide liquidity for rather than providing liquidity for any price and option. This enables LPs to fully customize their risk profile!

The current average premium paid will be displayed on the interface with a little blue bar, and LPs can select the range of premiums they are willing to underwrite options for.

For example: I can say I only want to sell ETH Calls that expire on July 5th with a strike of $1600 if the premium for that option is between $200 and $500. My liquidity won’t be used to underwrite any options where the premium is outside of that range.

This allows users to manage their risk and determine what premium is worth it for them to sell options that are more likely to expire in the money.

Option buyers will always know they are getting the best price possible, while LPs get more capital efficiency from their liquidity being used to underwrite their desired ranges.

Permissionless pools allows users to add their favorite tokens to Premia Blue and begin underwriting options for them, assuming they have enough liquidity to seed the pool.

Users are also able to deploy new pools for strike prices and/or expirations that don't yet have available liquidity.

As with all Premia pools, the LP can begin earning premiums and trading fees as traders utilize the pool.

Strategy Vaults are automated, low-maintenance ways of extracting yield from DeFi options on Premia Blue.

• Permissionless pool creation and underwriting and selling specific options is often more valuable for advanced users and people who want to actively manage their LP positions.

• Strategy Vaults are for users that want to put their liquidity to use on the platform without having to worry about the intricacies and management of concentrated liquidity positions.

Currently, Premia Blue supports both call- and put selling vaults for ARB, WBTC, WETH, wstETH, and LINK. Depositing into a vault also earns users additional PREMIA options rewards!

Remember, each of the main features that are available on the front-end are merely pieces of the bigger picture. For a more thorough understanding of Premia Blue, check out this article!

Let's recap the key features of Premia Blue: