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How Do AMMs Enable Decentralized Options Tokenization?

They create liquidity pools for trading option tokens, providing continuous market access without a central exchange.
Greeks.Live06.11.25

How Do AMMs Enable Decentralized Options Tokenization?

AMMs can be adapted to trade tokenized options by using liquidity pools that pair the option token with its underlying asset or a stablecoin. The smart contract acts as the counterparty for the option trade.

This enables continuous, liquid trading of options without needing a centralized exchange. The option token itself represents the contract's rights and obligations.

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