About

Premia is a company that specializes in options trading and yield earning. They provide a platform for users to trade options and earn yield on their assets.

History

Premium Finance was developed by Anon Powered, a collective of anonymous and pseudonymous developers, builders, and artists. Its goal is to provide a robust and reliable infrastructure for the decentralized options market. It also aims to fill gaps left by other options protocols, such as Liquidity-based pricing, user-defined exercise/maturity options, no long-term lockups, and self-incentivizing pool liquidity.

Premia Finance was launched on February 7, 2021. The platform was a fully decentralized peer-to-peer options trading platform that allowed users to underwrite, buy, and sell options. It also contained the necessary infrastructure to enable permissionless options trading.

However, due to the nature of a peer-to-peer marketplace without its own price discovery mechanism, the underwriter of the option set the strike price, maturity, and price of the option, which resulted in a lack of liquidity on the platform as buyers were unable to transact because not enough desired options were written. The platform also lacked several features desired by the market, such as better pricing and a simplified user experience in the form of trading and underwriting options.

On November 1, 2021, Premia V2 was launched as a pool-to-peer automated market maker with a liquidity-based pricing mechanism. Sellers are simply liquidity providers (LP's) depositing assets to create option contracts for buyers, increasing flexibility for option buyers, while LP's can earn rewards without actively writing options.