Overview
IVX Finance is a decentralized options automated market maker (AMM) built on the Berachain network. It facilitates the trading of zero days to expiry (0DTE) option contracts, which are options that expire within 24 hours, starting daily at 8:00 AM UTC. This platform allows users to engage in high-leverage trading—up to 200x—without the risk of liquidation, catering to a range of assets including blue-chip cryptocurrencies like wrapped Ethereum (wETH), wrapped Bitcoin (wBTC), XRP, Solana (SOL), as well as sectors such as non-fungible tokens (NFTs) and real-world assets (RWAs).
Portfolio Margin Accounts
Users on IVX Finance are required to create a self-custodial, smart contract-based portfolio account. By depositing assets into this portfolio, users can trade options on margin without liquidating their holdings. This setup supports the creation of complex option positions composed of multiple options, all collateralized by a single portfolio and managed under a cross-margin system.
Liquidity Provision
IVX Finance offers liquidity providers the opportunity to collateralize option positions initiated by traders, ensuring sufficient liquidity for users seeking to exit positions before expiration. The platform employs dynamic delta hedging strategies to mitigate market exposure within its liquidity pools, aiming to provide stable returns for liquidity providers.
Risk Considerations
Engaging with IVX Finance involves inherent risks associated with decentralized finance (DeFi) protocols, including potential vulnerabilities in blockchain technology, smart contracts, and oracle dependencies. The platform addresses these concerns through comprehensive audits to enhance security and reliability.
