Matchmaking

MYSO V3 provides different ways for users to get matched in the options marketplace. Each method is designed to cater to different needs, ensuring flexibility and accessibility for various participants.

1. Manual Matchmaking (OTC)

In this route, users can negotiate option writing terms with institutional trading firms via Telegram or other messaging platforms and then use MYSO V3 as a trustless settlement layer. The trading firm can provide tradeable quotes to the given user through an off-chain signature.

This off-chain signature, combined with a payload representing the corresponding option, can be shared via a shareable link. The user can then submit this data on-chain to initiate the trade seamlessly.

2. Dutch Auction

This method allows users to sell upside on their tokens by initiating a Dutch auction. The process works as follows:

• The call option is initially offered at a high relative premium (i.e., relative to the notional value).

• Over time, the premium gradually decreases.

• Market participants can monitor the auction and place bids when the premium aligns with their target value.

Because option terms such as strike price and premium are quoted in relative terms, this matchmaking method is particularly useful for DAO treasuries. Given the time constraints associated with DAO governance and voting, quoting in absolute terms may not always be feasible.

Note: Dutch auctions require on-chain oracles for accurate price discovery.

3. Automatic Matchmaking (RFQ)

With the RFQ (Request for Quote) route, users can request quotes for various option configurations from institutional trading firms. The process is as follows:

• Trading firms respond to these requests and make offers using off-chain signatures.

• Users can accept a quote by submitting the received signature on-chain for settlement.

Unlike the Dutch auction method, the RFQ method quotes option terms in absolute values (i.e., absolute strike price and premium). This allows for matchmaking without relying on on-chain oracles, making it a robust and flexible solution.

Atomic Settlement

Regardless of the matchmaking route, all transactions in MYSO V3 are settled atomically. This means:

• The user's underlying tokens are locked in a segregated escrow account.

• The escrow contract simultaneously mints an ERC20 option token for the trading firm.

• The option premium is transferred from the trading firm to the user, with a portion deducted as a protocol fee (if applicable).

The matched trading firm receives an ERC20 token representing the option position, granting the holder the right—but not the obligation—to acquire the underlying tokens at the specified strike price.

Post-Settlement Scenarios

Depending on the option configuration, various post-settlement scenarios are supported. These may include:

• Allowing the option writer to retain voting power over the underlying tokens.

• Enabling the option holder to borrow and repay underlying tokens for hedging purposes.

MYSO V3 provides users with multiple ways to get matched, ensuring a dynamic and efficient marketplace for decentralized option trading.