Diving Board Brings Options Trading to DeFi Using Space and Time Tech

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Diving Board, a crypto startup focused on options trading, has announced its official launch. The project boasts some impressive tech under the hood, with much of it coming courtesy of decentralized data warehouse Space and Time (SxT). It uses SxT’s verifiable compute layer to power its algorithms, with zero knowledge proofs ensuring data privacy.

Diving Board Takes the Plunge

The alpha release of Diving Board enables DeFi traders to get a feel for the options platform and familiarize themselves with its workings. Numerous markets will be supported on Diving Board, typically paired against BTC, including ADA, ALGO, AAVE, and dozens more. There are currently 29 active pools on Diving Board plus the ability for users to create custom ETFs and indexes.

As for how Space and Time’s verifiable compute comes into play, Diving Board founder Vinita Rathi explains: “Options are incredibly data-driven, and it’s paramount that the data powering our platform is accurate and tamper-proof. We’ve built Diving Board on Space and Time’s verifiable compute layer to power more informed and strategic trading for our users.”

Space and Time’s flagship product, Proof of SQL, was recently integrated into Chainlink functions, allowing it to run natively on Chainlink nodes. This allows the Chainlink network to verify that the results received have not been tampered with while making it easier for smart contracts to access trusted data onchain.

Options Bring Greater Choice to DeFi Traders

Options trading is a form of derivatives trading strategy that’s favored by certain traders because it frees them from being obliged to hold the underlying asset. In a crypto context, it’s most commonly BTC options that are traded, though assets like ETH can also be traded in the same manner. The trader takes out a contract that gives them the right to buy or sell an  asset at a specified price on a specific date. The strike price is the price that the asset has reached on the contract expiry date.

Options trading appeals to experienced traders, who understand the workings of the underlying contracts and the risks involved. Options suit market exposure over a longer timeframe than perpetual swaps, since the fees for maintaining an options position are lower than with perps. At present, DeFi traders are well served when it comes to onchain perps thanks to platforms such as GMX, GNS, and Pika Protocol. With the alpha release of Diving Board, options trading can come into focus, providing DeFi users with an alternative to perpetual swaps.

It’s All About the Data

Space and Time’s verifiable compute will do a lot of the heavy lifting in the background, serving data to the Diving Board platform that will power its aggregations and algorithms, of which there are many. Users of the alpha release can view data for a particular asset pairing such as ETH/USDT including 30-day yield, market cap, and active wallets trading the contract. 

Diving Board’s alpha release marks a new chapter for options trading, which finally has a chance to prove that it can be more than just a fringe product for sophisticated crypto traders. It’s also yet another proof of the utility of Space and Time’s verifiable compute, which is fast becoming the industry’s go-to solution for onchain data.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.