How Do Decentralized Options Protocols Specifically Try to Hide or Obscure Pending Trade Details?
Decentralized options protocols employ techniques like "zero-knowledge proofs" (ZKPs) or commit-reveal schemes. ZKPs allow a user to prove they have a valid transaction (e.g. an options trade) without revealing the specific parameters (strike price, size, direction) to the mempool.
This obscuring of data prevents front-running bots from calculating the arbitrage opportunity. Commit-reveal schemes, as discussed, also hide the trade details until execution.