Numo 🟩

A marketplace for options on ERC-20s.

Numo enables 24/7 option markets for leverage, income, and hedging. The smart contract suite is a Uniswap V4 hook and is inspired by @primitivefinance's open source RMM-01 implementation and the replicating market makers paper that first proved any option strategy can be constructed using CFMMs.

Liquidity Providers

⚠️ WARNING: This code has not yet been audited. Use at your own risk.

Liquidity providers on Numo earn sustainable yield from selling european-style call options. As in traditional options markets, sellers earn a premium upfront. These premiums are paid by buyers who enjoy the right but not obligation to exercise the call option if it is in the money. To optimize the premiums earned, a batch auction can be implemented to match buyers and sellers.

Numo deploys a market instance for each pair. Each market can handle any two arbitrary ERC-20 token and follows the standard naming conventions seen in traditional FX markets (base/quote).

Set up

requires foundry

forge install
forge test

Updating to v4 dependencies

forge install v4-core

Deployment

For testing on your local machine, deploy on Anvil.

# start anvil, a local EVM chain
anvil

# in a new terminal
forge script script/Anvil.s.sol \
    --rpc-url http://localhost:8545 \
    --private-key 0xac0974bec39a17e36ba4a6b4d238ff944bacb478cbed5efcae784d7bf4f2ff80 \
    --broadcast

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