Premia is a decentralized American-style options market based on a pool-to-peer architecture. Now, Arbitrum users could trade wstETH call & put options on Premia with any token so long as their is DEX liquidity available.
Note: to trade options or provide liquidity on Arbitrum, you will also need ETH in order to pay gas.
Buy Options
There are 2 pools for wstETH/Dai: a Call pool and a Put pool. If you want to long wstETH, buy Call options and vice versa.
Head over to Premia Options and connect your wallet to Arbitrum network.
Select wstETH from dropdown menu.
Select the option parameters.
Call or Put
Strike Price
Expiration date
Option Size (minimum option size: 0.1) to request an option price quote.
Click “Buy Option”.
Select the token from “Buy with” dropdown manu to pay the option premium (e.g. wstETH). In this case, we select wstETH as the payment token.
Click “Approve wstETH” to approve the transaction.
Click “Buy for xxxx wstETH” to finish the purchase if you accept the option price.
Exercise Options
When you buy an option, you can exercise the option fully or in partial at any time after purchase. If an option has not been exercised after expiration, Premia automatically locks its exercise value to the value of the option at the time of exercise.
Head over to Premia positions and and connect your wallet to Arbitrum network.
Select the option you would like to close, and click “Close”
Select “Full amount” or “Partial amount”, and click “Sell back to pool”
Confirm the transaction to finish the option settlement.
Provide Liquidity
wstETH/Dai option has a Call pool & a Put pool. The Call pool is underwritten in the underlying token (i.e. wstETH) and the Put pool is underwritten in Dai.
You have to decide which pool to underwrite. If you bullish on wstETH, you can underwrite wstETH/Dai Put pool by depositing Dai into the pool and vice versa.
To add liquidity:
Head over to Premia Pools and and connect your wallet to Arbitrum network.
Find wstETH pools.
Select Call or Put pool and Click “Add”.
Select the preferable deposit token and the amount.
Click “Confirm Deposit” to finish the transaction
Note: Deposits are locked for 1 day minimum. After that, you are allowed to withdraw the liquidity.
To remove liquidity:
Head over to Premia Pools and and connect your wallet to Arbitrum network.
Find wstETH pool in which you added liquidity.
Click “Remove”.
On the Basic tab, Click “Remove all free & active liquidity” (You also could remove free and active liquidity separately).
Confirm the transaction on the wallet
For more information, please visit Premia Docs.