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.

How Do ‘Commit-Reveal’ Schemes Mitigate Front-Running?
Can a DEX Protocol Be Designed to Be Inherently Resistant to Front-Running?
How Do Zero-Knowledge Proofs (ZKPs) Ensure Transaction Validity without Revealing Underlying Data?
How Do Commit-Reveal Schemes Affect the User Experience on a Decentralized Exchange (DEX)?
How Can Commit-Reveal Be Adapted for Use in a Decentralized Options Auction?
How Can Layer 2 Solutions Reduce the Gas Fee Overhead of Commit-Reveal Schemes?
What Are the Two Distinct Phases of a Commit-Reveal Scheme?
What Are Zero-Knowledge Proofs and How Could They Potentially Offer a Faster Alternative to Commit-Reveal?

Glossar