Epicentral LabsOMLP
Option Margin Liquidity Pools
Overview
Option Margin Liquidity Pool (OMLP) is a programmable, non-custodial liquidity architecture that enables users to access margin for options trading while being cash-covered. This allows lenders to participate in options trading by routing liquidity to seller-side demand.
Traditional Options vs. OMLP Options
Comparing Traditional Options and OMLP Options
| Aspect | Traditional Options Structure | OMLP Structure (Single-Party Paradigm) |
|---|---|---|
| Counterparties | Buyer and seller | Buyer, Seller, and Lender |
| How contracts are made | Requires two parties to agree on terms | Requires two parties to agree on terms (allows for third party involvement) |
| Role of liquidity | Seller provides margin and assumes full obligation | Seller provides margin and assumes full obligation (allows for third party liquidity) |
| Contract flexibility | Limited by seller availability and preferences | Limited by seller availability and preferences |
| Trade Execution | Executed by custodial agents | Executed by non-custodial smart contracts |
| Pricing | Vulnerable to inefficient brokerage bid/ask spreads | Standardized, Options Pricing Model (OPM) |
Two-Tier Liquidity Architecture
The OMLP utilizes a dual-tier Single-Asset Pool (SAP) system, which optimizes capital efficiency, and allows for third-party integration for liquidity scaling.
Single-Asset Pools (SAPs)
Single-Asset Pools (SAPs) represent only one underlying asset. Liquidity providers deposit the underlying asset to enable margin for options trading. For a token to be tradable on OPX, there must be a SAP for it.
The system operates on a tiered priority basis:
| Tier | Name | Source | Activation |
|---|---|---|---|
| Tier 1 | SAP-1 | In-house pools governed by Epicentral DAO | Primary liquidity source |
| Tier 2 | SAP-2 | External platforms (Kamino, Orca, etc.) | Activates when SAP-1 reaches 95% utilization |
Token Listing Eligibility
The Epicentral DAO determines which assets qualify for trading on OPX. Eligibility is established through on-chain governance proposals, ensuring that the community selects supported tokens.
Key Impact & Market Innovation
Retail lenders receive direct exposure to options liquidity for the first time, without the need to open their own options positions.
This approach establishes a scalable options infrastructure that provides capital efficiency, user-sovereign execution, and uninterrupted market access—eliminating centralized order routing, custodial control, and discretionary managerial intervention.
Smart Contract Risk Disclosure
All participants should understand that interactions with smart contracts involve inherent risks, including potential vulnerabilities, exploits, or loss of funds. Please review the official Terms of Service for full details and disclaimers regarding smart contract risk on OPX.
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