Idea

Making money in the cryptocurrency market (actually in any financial) is based on predicting the future, and the Stonks platform is designed to facilitate this. The main goal is to create a decentralised platform where users can bet among themselves on the outcome of future events on the financial markets. The way to achieve this goal is to create a unique in DeFi world cryptocurrency options trading system.

How it works

The option seller deposits cryptocurrency (or stablecoin equivalent) into the liquidity pool for which he is immediately rewarded. The value of the reward is calculated based on the Black-Scholes model. The seller chooses whether to create a sell or buy option. From the user interface, it looks like the seller chooses whether he "bets" that the crypto will not fall or rise above a level he specifies within a time frame he specifies. If the seller is right, he receives his deposit back after his specified time. If the seller is wrong, he only receives the difference between the price of the underlying at the time the option was created and the time of exercise.

The liquidity pool makes money if the sellers are wrong in their predictions - it is a de facto buyer of options. In addition, the liquidity pool sells options to users who want to buy them at a price higher than the option value - in this case it earns a spread by delegating the risk that sellers are right to users who buy options. Liquidity providers reap dividends from the pool's profits in proportion to their share in providing liquidity.